Input your savings and number of years to this Post Office Selva Magan Scheme Calculator and click on “Calculate” button and see your estimated amount and savings.
Post Office Selva Magan Scheme Calculator
Key Features of Post Office Selva Magan Scheme Calculator
Input Validation:
- Ensures the annual deposit is at least Rs. 500 and no more than Rs. 1.5 lakh.
- The minimum deposit required to open the account is Rs. 100, but since only annual deposits are considered, this is checked against the annual deposit.
Compound Interest Calculation:
- Uses the formula for the future value of a series of cash flows (annual deposits) with compound interest.
User-Friendly Interface: The layout remains clean and user-friendly.
Understanding the Post Office Selva Magan Scheme
The Post Office Selva Magan Scheme is a government-backed savings initiative aimed to encourage parents and guardians to save for their children’s future. This scheme offers a structured savings plan with attractive interest rates, making it an excellent choice for long-term financial planning.
Key Features of the Selva Magan Scheme
Eligibility:
- The scheme is designed for minors, allowing parents or guardians to open an account on their child's behalf.
- The minimum age for opening an account is zero years, and it can be maintained until the child reaches adulthood i.e. 18 years.
Minimum and Maximum Deposits:
- The minimum amount required to open the account is Rs. 100.
- Parents or guardians are required to deposit a minimum of Rs. 500 per year to keep the account active.
- The maximum annual deposit allowed under this scheme is Rs. 1.5 lakh, providing flexibility for those looking to save more for their children's future.
Interest Rate:
- The scheme offers a competitive interest rate of 9.7% per annum, which is compounded annually. This feature allows savings to grow more amount over the time, making it an appealing option for long-term investments.
Maturity:
- The account matures when the child turns 18 years old, allowing for the withdrawal of the total amount accumulated along with interest amount.
- This maturity feature helps in planning for securing future expenses, such as higher education or starting a business.
Tax Benefits:
- Investments made under this scheme qualify for tax deductions under Section 80C of the Income Tax Act, subject to the prescribed limits. This aspect enhances the overall return on investment.
Easy Management:
- The account can be easily managed at any post office branch, ensuring accessibility and convenience for account holders.
Why Choose the Selva Magan Scheme?
The Selva Magan Scheme is good for several reasons:
- Security: Being a government-backed scheme, it offers a high level of security for the investments.
- Long-Term Growth: With compounding interest rate, this scheme ensures that your savings grow over time.
Conclusion
The Post Office Selva Magan Scheme is an excellent option for parents looking to secure their children's future through small savings. With its attractive interest rate, tax benefits, and easy management, it provides a practical way to save for future expenses. If you're looking for a savings plan for your child, the Selva Magan Scheme is worth exploring.
For further details or to open an account, visit your nearest post office or check the official website of India Post.