Public Provident Fund: PPF i.e. Post Office Public Provident Fund is a long term savings scheme given by the government. Along with guaranteed returns, it also offers tax benefits under Section 80C of the Income Tax Act, 1961. Besides, the entire amount received on maturity is also tax free. This is a government scheme which gives guaranteed returns in the long term. Let us know how much you can earn in 18 years by investing Rs 5,000-10,000 every month so that you can make financial planning from now to secure your future.

Who can invest in PPF?

Anyone can invest in PPF – salaried class, businessmen or pensioners can open a PPF account. If someone is a minor, then in this situation his parents or legal guardian can open his PPF account. In the absence of parents, grandparents can start investing in PPF in the name of their grandchildren as legal guardians. Overall, any resident of India can invest in PPF. NRIs (Non-Resident Indians) cannot open PPF account.

How much amount should I start investing with?

The minimum amount of investment in PPF is Rs 500, that is, you can open your PPF account by depositing Rs 500. Whereas a maximum investment of Rs 1.5 lakh can be made. Its lock-in period is 15 years, after which if you want, you can extend it with an unlimited block of 5 years each.

On maturity, fill the account closing form and submit it along with your passbook and withdraw your share of the money. If you want, you can leave the maturity amount in your account and earn interest on it. You will be allowed to withdraw from your PF account once a year. In case of emergency, if you need money, you can withdraw up to 50 percent of the balance at the end of every fourth year.

Now let us know that if you deposit Rs 5000, Rs 7000 or Rs 10000 every month in your PF account for a period of 18 years, then how much will be deposited with you. Here we are calculating according to 7.1 percent interest rate.

How much will you get on an investment of Rs 5000?

An investment of Rs 5000 for 12 months means Rs 60000 are being deposited in the PF account annually. The investment amount in 18 years will be Rs 10,80,000, while the interest earned on it will be Rs 11,25,878. That means your maturity amount will be Rs 22,05,878.

How much will you deposit on an investment of Rs 7000?

By investing Rs 7000 every month in PF account, the annual investment (7000×12) will become Rs 84000. That means, in 18 years, the amount of your investment in PF account will be Rs 15,12,000, while the interest received on it will be Rs 15,76,230. According to this, the estimated maturity amount will be Rs 30,88,230.

How much money will you get on an investment of Rs 10000?

If you keep depositing Rs 10,000 in your PF account every month, your annual investment will be Rs 1,20,000 (10,000×12). In this way, in 18 years your deposit amount will increase to Rs 21,60,000 and you will get Rs 22,51,757 as interest on it. That is, on maturity you will get Rs 44,11,757.

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Kisan vikas patra: To keep the future of ourselves and our family secure, we invest in various schemes, so that we will get a lot of profit. Today we are going to tell you about one such scheme, which doubles your money in a short time. We are talking about Kisan Vikas Patra here, in which there is no possibility of drowning money because the responsibility of its maintenance is in the hands of the government.

Money becomes double in so many days

Through this certificate scheme, savings are promoted in the country. The money invested in this government scheme of the post office started in 1988 becomes double in 115 months i.e. about 9 and a half years. In this, you can start the investment at least 1000 rupees, there is no limit of maximum investment. In this scheme, interest is available at the rate of 7.50 percent on the amount deposited.

This is the specialty of the scheme

The biggest feature of this scheme is that even a child over 10 years of age can invest in it. The maturity period for the scheme is about 10 years, but after 2 years 6 months you can also withdraw Premature. The scheme also has a nominee facility and under Section 80C of the Income Tax Act, 1961, a tax benefit of up to 1.5 lakh is also included. That is, overall, your money is also safe in this scheme and good returns are also available.

How to buy Kisan Vikas Patra?

• For this, you have to go to a nearby post office branch or government bank.
• Then from here, take the Kisan Vikas Patra Yojana application form and fill the information sought in it correctly.
• Now submit the photo copy of all the necessary documents together by pasting the passport size photo and signing the thumb mark or sign.
• If you want, you can also get more information related to this from 1800 266 6868 helpline number.
• Some banks also give you the facility of opening KVP accounts online such as ICICI Bank, HDFC Bank, IDBI Bank.

These documents will be needed

• Identity Proof
• Address proof
• Aadhar card
• PAN card will also be imposed on investment of more than Rs 50,000.

Who can open?

• You should be a citizen of India.
• Age should be more than 18 years.
• Legal parents can open this account in the names of children under 18 years younger.
• NRI cannot invest in this scheme.
• In this you can open a single account.
• Two adults can also open a joint account.

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Retirement saveings scheme: If the life after retirement needs comfortable and secure, then financial planning will also have to be done accordingly. There are three extremely popular options of retirement savings scheme in our country- Public Provident Fund (PPF), Employees Provident Fund (EPF), and National Pension System (NPS). The features of each of these schemes are unique. If you too are finding it difficult to choose one of these, then we make your work easier. Let us tell you through this news how these three are different from each other so that you do not have trouble in choosing the right plan according to you.

Public Provident Fund (PPF)

PPF is a government scheme that allows savings in long term. In this, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year. It has been designed keeping in mind those who are looking for a risk free investment option with tax benefit.

Its specialty

The maturity period in PPF is 15 years. It can be extended in a 5-5 year block.

The government gives interest at the rate of 7.1 percent annually on the PPF account. The interest rate on PPF is determined by the government every quarter.

This risk is free due to being supported by the Government of India.

There is a tax exemption on investment up to Rs 1.5 lakh annually under Section 80C on PPF.

There is no tax on interest in interest.
Loss

The PPF comes with a lock in period of 15-sight. After the completion of 15-year lock-in period, you can close the account and withdraw all the money from the PPF account.

Return on this does not move much further than inflation.

Employee Provident Fund (EPF)

EPF is a compulsory savings scheme for employees working in a company in number 20 or more. Its purpose is to provide financial security to salaried employees after retirement.

Its specialty

In the EPF, 12 percent contribution of basic salary and dearness allowance is done by both the company and the employee.

The interest rate on the Employees Provident Fund for the current financial year is 8.25 percent.

The risk on this is low and returns are guaranteed.

On investing in EPF, there is a tax exemption of up to Rs 1.5 lakh under Section 80C.

The contribution of Rs 2.5 lakh every year in PF account is free.

The fund after retirement is completely tax free.

The interest rate is higher than PPF.

Savings also increase according to the contribution of the employer.

If needed, you can also do partial withdrawal of deposited amount.

Loss

Contribution of more than Rs 2.5 lakh is taxed.

It is limited to salaried persons only.

National pension system (nPS)

NPS is a retirement savings scheme launched by the Government of India. In this, you can choose the option of investment in equity, corporate date, government bonds according to your choice. Return on this is not fixed because it is connected to the market.

Specialty

There is no upper limit of contribution in it.

It usually gets a return of 8-10 percent.

Due to the market linked scheme, the returns may be found on the basis of the performance of the fund manager, but in this you can choose the investment option according to the ability to take your risk. You can change the investment according to time.

Under section 80C, tax exemption on investment up to Rs 1.5 lakh is available. Under Section 80CCD (1B), subscribers can avail an additional Rs 50,000 deduction.

60 percent tax-free of NPS corpus can be extracted, while the remaining 40 percent is used to buy annuity.

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