Compound Interest – Daily Pioneer https://dailypioneer.in Dose of News Thu, 19 Dec 2024 04:37:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://dailypioneer.in/wp-content/uploads/2023/04/cropped-DP-32x32.jpg Compound Interest – Daily Pioneer https://dailypioneer.in 32 32 Sukanya Samriddhi Account: Can You Manage It Online? https://dailypioneer.in/sukanya-samriddhi-account-can-you-manage-it-online/ Thu, 19 Dec 2024 04:37:40 +0000 https://dailypioneer.in/?p=6239 The Sukanya Samriddhi Yojana (SSY) is a popular government-backed savings scheme aimed at securing the future of daughters. Parents can open this account for a girl child under 10 years of age, and the scheme requires investments for 15 years while maturing after 21 years.

You can invest a minimum of ₹250 and a maximum of ₹1.5 lakh annually under this scheme. Currently, it offers an attractive interest rate of 8.2%, making it a long-term investment option that benefits from compounding. Many parents opt for this scheme to build a substantial corpus for their daughter’s future needs, such as education or marriage.

If you are considering investing in this scheme and wondering whether you can open an account online, here is a detailed guide.

How to Open a Sukanya Samriddhi Account

  1. Fill the Form: Obtain the Sukanya Samriddhi Yojana application form.
  2. Prepare Documents: Attach the required documents, including the girl’s birth certificate, a photograph, and the guardian’s identity proof.
  3. Visit the Branch: Submit the completed form and documents at the nearest authorized bank or post office. Carry original documents for verification.
  4. Account Verification: The bank or post office staff will verify your documents and process your application. Once verified, the account will be opened.

Can You Open a Sukanya Samriddhi Account Online?

Currently, the facility to open an SSY account online is not available. Accounts must be opened by visiting a bank or post office in person. However, you can download the application form from the official websites of authorized banks or the post office to save time.

Online Services Available After Account Opening

Once the Sukanya Samriddhi Account is opened, several services can be accessed online, such as:

  • Depositing money into the account.
  • Paying subsequent installments.
  • Checking the account balance and transaction statements.
  • Transferring the account to another branch, if required.
  • Transferring the matured amount to the girl’s bank account when the scheme matures.

By combining these online facilities with the benefits of this scheme, parents can efficiently manage the account after its setup.

Investing in the Sukanya Samriddhi Yojana is a smart and secure step toward ensuring your daughter’s financial independence and future stability. Start early to maximize the benefits of compounding and safeguard her future goals.

]]> Master the PPF Strategy to Become a Crorepati by Retirement https://dailypioneer.in/master-the-ppf-strategy-to-become-a-crorepati-by-retirement/ Tue, 05 Nov 2024 14:44:50 +0000 https://dailypioneer.in/?p=5614

Planning for retirement is crucial, and with the right strategy, you can reach your financial goals sooner than expected. Becoming a Crorepati by the time you retire doesn’t have to be a distant dream. With a disciplined approach and smart investments, especially in the Public Provident Fund (PPF), you can secure a stress-free retirement. Here’s a guide to help you turn this vision into reality.

Invest in PPF for a Safe Path to ₹1 Crore

PPF is a reliable government-backed scheme that offers long-term returns with a fixed interest rate of 7.1%, making it a popular choice for retirement planning. By following a strategic investment plan, you can potentially retire with a substantial corpus.

Case Study: Three Scenarios to Reach ₹1 Crore by Age 55

Case 1: Invest ₹12,500 Monthly Starting at Age 30

  1. Initial Investment: Start investing ₹12,500 monthly in PPF at age 30.
  2. First 15 Years: Accumulate ₹40.68 lakh by the age of 45.
  3. Extension Strategy: Extend PPF twice, adding 5-year blocks.
    • After 20 Years: ₹66.58 lakh
    • After 25 Years: ₹1.03 crore
  4. Outcome: Reach ₹1 crore by age 55 with a total investment period of 25 years.

Case 2: Invest ₹10,000 Monthly Starting at Age 25

  1. Initial Investment: Start investing ₹10,000 monthly in PPF at age 25.
  2. First 15 Years: Accumulate ₹32.54 lakh.
  3. Extension Strategy: Extend PPF with three 5-year blocks.
    • After 20 Years: ₹53.26 lakh
    • After 25 Years: ₹82.46 lakh
    • After 30 Years: ₹1.23 crore
  4. Outcome: Reach ₹1 crore by age 55, with a higher balance due to starting early.

Case 3: Invest ₹7,500 Monthly Starting at Age 20

  1. Initial Investment: Start investing ₹7,500 monthly in PPF at age 20.
  2. First 15 Years: Accumulate ₹24.40 lakh.
  3. Extension Strategy: Extend PPF with four 5-year blocks.
    • After 20 Years: ₹39.94 lakh
    • After 25 Years: ₹61.84 lakh
    • After 30 Years: ₹92.70 lakh
    • After 35 Years: ₹1.36 crore
  4. Outcome: Achieve ₹1 crore by age 55 with a more significant corpus by starting early.

Why PPF Works: The Power of Compound Interest

PPF leverages compound interest, which allows your investment to grow exponentially over time. The longer your money remains invested, the greater your returns will be, thanks to compounding.

Conclusion: Start Early and Stick to the Plan

With PPF, consistent monthly investments, and periodic extensions, you can comfortably reach a Crorepati status before retirement age. So, start investing today and secure your financial future.

]]> Post Office RD: Unlocking Loan Facilities, Interest Rates, and Benefits Explained https://dailypioneer.in/post-office-rd-unlocking-loan-facilities-interest-rates-and-benefits-explained/ Sat, 18 Nov 2023 11:38:11 +0000 https://dailypioneer.in/?p=3713 If You Are Looking For A Scheme In Which You Can Generate A Big Amount By Investing Through Small Savings, Then Post Office Rd Can Be A Better Option For You. Post Office Rd Is A 5 Year Scheme. At Present, Interest Of 6.7 Percent Is Being Given In This. But Do You Know That You Also Get The Facility Of Loan Under The Post Office Rd Scheme. If You Suddenly Need Money And Do Not See Any Way, Then Instead Of Breaking Any Of Your Schemes, You Can Fulfill The Need Of Money By Taking A Loan From Post Office Rd. Know Here What Are The Terms And Conditions Regarding Loan On Post Office Rd.

Loan Facility Available After 1 Year

If You Deposit 12 Consecutive Installments In The Five-Year Recurring Deposit Scheme Of The Post Office, Then You Get The Loan Facility. That Means, To Avail This Facility, You Will Have To Deposit The Amount Continuously For At Least One Year. After One Year, You Can Take A Loan Up To 50 Percent Of The Amount Deposited In Your Account. You Can Pay The Loan Amount In Lump Sum Or In Equal Monthly Installments.

What Is The Interest Rate?

Interest On The Loan Amount Will Be Applicable At 2% + Rd Interest Rate Applicable On Rd Account. Interest Will Be Calculated From The Date Of Withdrawal To The Date Of Repayment. If You Do Not Repay The Loan On Time After Taking It, Then When The Rd Matures, The Loan Amount Along With Interest Will Be Deducted From It. To Avail The Facility Of Loan Against Rd, You Have To Fill The Application Form Along With The Passbook And Submit It To The Post Office.

Other Benefits Of Post Office Rd

  • Post Office Rd Can Be Opened With Rs 100, This Is An Amount Which Anyone Can Easily Save. There Is No Maximum Investment Limit In This.
  • You Get The Benefit Of Compounding Interest On Post Office Rd. Interest Is Calculated Every Quarter. In Such A Situation, You Get A Good Profit In The Form Of Interest In 5 Years.
  • A Person Can Open Any Number Of Accounts In The Post Office Recurring Deposit Scheme. In This, Apart From Single, Joint Account Can Be Opened For Up To 3 Persons. There Is A Facility To Open An Account In The Name Of The Child Also.
  • The Maturity Of Rd Account Is 5 Years. But, Pre-Mature Closure Can Be Done After 3 Years. It Also Has The Facility Of Nomination. At The Same Time, After Maturity, Rd Account Can Be Continued For Further 5 Years.
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