The Indian Post Office offers a variety of savings schemes that provide citizens with a safe and reliable way to grow their wealth. Among these, certain schemes stand out as particularly effective for long-term financial goals. By investing ₹12,500 per month in a Post Office scheme, individuals can potentially accumulate a corpus of around ₹40 lakh over a period of 15 years.
Consistent monthly savings are key to building a substantial financial cushion. Investing a fixed amount each month into a scheme with decent returns and government backing allows for steady wealth accumulation. A monthly contribution of ₹12,500 translates to an annual investment of ₹1.5 lakh. When invested in a long-term post office scheme with compounded interest, this amount can grow significantly.
To reach the ₹40 lakh mark, consider schemes like the Public Provident Fund (PPF), Post Office Recurring Deposit (RD), Monthly Income Scheme (MIS), and Time Deposit schemes. A combination of short-term and long-term deposits that roll over annually can also be utilized. Assuming an average return of around 7.1% per annum, compounded either quarterly or annually, consistent monthly investment over 15 years can bring the total close to ₹40 lakh. This includes both the principal and the accumulated interest.
For example, if you invest a maximum of ₹1.5 lakh every financial year, which means saving ₹12,500 per month, and continue this for 15 years, your total deposit will be ₹22,50,000. With an interest rate of 7.1 percent, you could receive a guaranteed return of approximately ₹18,18,209, resulting in a total maturity amount of ₹40,68,209.
The Public Provident Fund (PPF) is a popular choice, known for its safety and tax benefits. It offers 7.1% annual interest, and the interest earned is entirely tax-free. The amount invested, the interest received, and the maturity amount are all exempt from tax, making it an EEE (Exempt-Exempt-Exempt) scheme. The lock-in period is 15 years, but partial withdrawals and loans are permitted under certain conditions.
An account can be opened with as little as ₹500, and a maximum of ₹1.5 lakh can be invested in a financial year. The investment method is flexible, allowing for monthly investments or lump sum deposits. After the 15-year period, the investment can be extended for additional 5-year periods.
By understanding the potential of post office schemes and adopting a disciplined investment approach, building a substantial financial corpus becomes an achievable goal.
