Higher interest rate has been provided in Mahila Samman Savings Account and in view of such situation, this savings system has been given only to women. This savings scheme with higher interest rate, accounts can be opened for women or minor girls on the application of the guardian.

Getting guaranteed interest of 7.5%.

Up to 7.5% interest is being provided in this savings scheme, although there are some other terms and conditions for which your life is important.

• This account can be opened till March 31, 2025.
• Maximum ₹ 200000 per year can be deposited in the account.
• More than one account can also be opened under this investment scheme.

When up to 8% interest is being received in government and other private banks, then what will be the benefit of this Women’s Savings Samman Account in such a situation? The answer to this question is something like this, because of the increase in the repo rate due to high inflation, banks are paying up to 8% interest.

But changes are being made from time to time by the Reserve Bank of India, due to the repo rate, the interest rates will go down again in the days to come, then such huge fixed deposit interest rates will not be available in the banks. In such a situation, this savings investment will be considered very good for women and an additional savings scheme will be available to the people.

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One scheme is Public Provident Fund (PPF). This is a good option for making substantial corpus in the long term. Investors are benefited in many ways in this. First it comes in EEE (Exempt, Exempt, Exempt) category. Second, it offers guaranteed interest, which the government decides every quarter.

The third advantage is that the investment in it remains safe. There is no effect of market fluctuations. Up to Rs 1.5 lakh can be invested in PPF every year. Being a long term savings product, investors get tremendous benefit of compounding.

PPF: Account can be opened with ₹ 500

In the Public Provident Fund (PPF) scheme, an account can be opened with a minimum of Rs 500. This account can be opened in the nearest post office branch or designated bank branch. Minimum 500 and maximum 1.5 lakh rupees can be deposited in this account in a financial year. From January 1, 2023, this scheme is getting 7.1 percent interest annually. Compounding in this scheme is done on an annual basis. The maturity of PPF account is 15 years. But account holders can apply to increase it in a block of 5-5 years. In this, he also gets the option of continuing the contribution or not.

42 lakh fund with 5,000 monthly investment

In PPF, investors get the power of compounding. Suppose you deposit Rs 5,000 every month in your PPF account. In this way your annual investment becomes Rs.60,000. When your PPF account matures in 15 years, when you will get Rs 16,27,284. If you extend the deposit for the next 10 years in a term of 5-5 years, then after 25 years your fund will be around 42 lakhs (Rs 41,57,566). In this, your contribution will be Rs 15,12,500 and interest income will be Rs 26,45,066.

Keep in mind here that this calculation is based on the entire maturity period at 7.1% interest per annum. In PPF account, the government changes the interest rates on a quarterly basis. If the interest rates are low or high, then your corpus can also increase or decrease.

Money completely safe, tremendous benefit of tax

The government sponsors small savings schemes. Therefore, in this, the customer gets complete protection on the investment. There is a sovereign guarantee on the interest earned in it, which makes it safer than bank interest. Bank deposits are insured up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Tax benefit is available in PPF under section 80C of the Income Tax Act. In this, deduction of investment up to Rs 1.5 lakh can be taken in the scheme. Interest earned in PPF and maturity amount are also tax free. In this way investment in PPF comes under EEE category. Loan facility is also available on PPF account. You can apply for a loan after completion of one year from the end of the year in which the PPF account is opened and before completion of 5 years.

The post PPF Super Scheme: Deposit ₹ 5,000 monthly, get ₹ 42 lakh guaranteed in 25 years first appeared on Rightsofemployees.com.