The Indian Postal Department operates small savings schemes in the main postal business. Anyone can become a millionaire by investing in it. Investments have to be made for 5 years and maximum 25 years. The money that a person will get can be in crores. The list includes Public Provident Fund (PPF), Recurring Deposit (RD), National Savings Certificate (NSC) and Time Deposit (TD) schemes.
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PPF for 15 years deposited Rs 1.5 lakhs annually. May be extended up to 5 years. The annual interest rate is 7.1 percent. Instead of investing Rs 1.5 lakh per year, the total investment over 25 years would be Rs 37,50,000. 1.03 crores after 25 years.
FD gets 7.7% interest. 15 lakhs, interest rate: 6.7 percent per year, can become a millionaire in 30 years.
12,500 PPF per month with 8.8 percent compound interest on hold. 1,50,000 is deposited. After 27 years it is Rs 99 lakhs. The total investment will be Rs 40,50,000 lakhs.
Under Section 80C of the Income Tax Act in NSC, an investment of Rs 1.5 lakh per year yields 6.8 per cent interest over five years.