Ponmagan Podhuvaippu Nidhi Scheme is a saving scheme for boy children run by the Central Government. Department of Post has organized this scheme. This scheme also applies to low-income, middle class and even for the upper-class people. With small amount of money, you can see huge profit in this scheme. This scheme suits for the proverb “small drops make a great ocean”. This project has been launched to stimulate the saving habit and it can be used for educational purpose and for other purposes.
BASIC INFORMATION:
This scheme was launched on 4th of September 2015. More than 10,60,000 accounts have been opened in the few years since the inception of the scheme. Originally this saving plan was brought in for the girl child and then it was brought for the boys as well.
ACCOUNT OPENING INFORMATION:
This plan can only be opened at post offices even in Cities and Villages. By filling the form given in the post office you can open the account with minimum amount of INR 100.
ELIGIBILITY:
Boys above the age of 10 can open self-account for themselves. This will increase the habit of saving money.
Boys below the age of 10 can open joint account with their parents or guardian.
DOCUMENTS NEEDED:
For boys above the age of 10 can open individual account with their birth certificate, Aadhar card and two passport size photos.
For boys below the age of 10 they cannot open individual account they have to open joint account with their parents or guardian. Documents needed in this case are birth certificate of the child and Aadhar card of the parent or guardian.
AMOUNT PAYABLE:
Opening deposit is INR 100. According to government yearly INR 500 to INR 150000 should be paid. It can in lumpsum or in 12 monthly payments. If you pay less than INR 500 or fail to pay any money in a year then you must pay INR 50 as a penalty with the amount of 500 or more for the current year. Amount can be paid according to your income, but it should not be less than 500 and it should exceed INR 150000.
Amount can be paid in post office or through net banking. In-order to transfer fund via online mode a separate savings account in post office has to be opened from which money can be transferred to the scheme.
RATE OF INTEREST: Ponmagan Podhuvaippu Nidhi
Rate of interest will be changing year on year. But there will not be drastic changes. Approximately .2% or .3% will change every year. This year the ROI is 7.9% but there is chance to increase 8.1%.
MATURITY PERIOD:
Maturity period is 5 years but the same can be extended within one year of maturity for further 5 years. Premature closure cannot be done before 15 years. After 7 years 50% of the money can be withdrawn if parent or guardian wishes to do so.
IMPORTANCE OF SAVING IN THIS SCHEME:
It is a Central Government scheme so it is safe to invest your money. It is the best scheme because it gives nearly 8% interest and no other saving scheme will give this interest rate. No risk is involved. Deposits qualify for deduction from income under section 80C of Income Tax Act.
EXAMPLE:
If you invest 1000 INR per month then you have to pay 180 months (15 years *12 months) amount that you paid for 180 months will be INR 1,80,000. Your returns at 15 years will be INR 3,42,779 and the same at 21 years your return will be INR 5,46,977.