Post Office PPF Scheme: When it comes to safe and long-term savings, most Indian families think of the Public Provident Fund (PPF). It’s that one scheme parents often open for their children’s future, because it’s not just about returns it’s also about safety and tax benefits. The beauty of PPF is in its simplicity: you invest every year the government adds guaranteed interest, and over the years it quietly grows into a big fund.
Now imagine this: you deposit just ₹71,000 once every year, and you keep doing this for 15 years. At the end, your small annual savings can turn into ₹19,25,619. Surprising, right? Let’s understand how this magic of compounding works in the PPF scheme.
Read more: Deposit ₹5,000 Every Month and Get ₹3,56,830 Full Calculation
Current Interest Rate in PPF
The Post Office PPF scheme is backed by the Government of India, so your money is 100% safe. The current interest rate is 7.1% per annum (compounded annually). The lock-in period is 15 years, which means once you open the account, you have to stay invested for at least that much time. But trust me, the wait is worth it.
Calculation: ₹71,000 Per Year for 15 Years
| Annual Deposit | Duration | Interest Rate | Total Investment | Total Interest | Maturity Value |
| ₹71,000 | 15 Years | 7.1% | ₹10,65,000 | ₹8,60,619 | ₹19,25,619 |
So, even though you are investing just over ten and a half lakh rupees in total, your money earns you an additional ₹8.6 lakh as interest, making your maturity fund close to ₹19.25 lakh.
Real-Life Example
Think of Suresh, a small shopkeeper. Every year, after Diwali, he puts aside ₹71,000 from his earnings into his PPF account. At first, it felt like a sacrifice, but he kept at it for 15 years. When his daughter was ready for higher studies, he had more than ₹19 lakh waiting for him. That lump sum gave him confidence that his daughter’s education wouldn’t stop because of money. This is exactly why PPF is not just a scheme it’s a safety net for the middle-class family.
Why PPF is Special
PPF is not only safe but also comes with extra benefits. Whatever you invest (up to ₹1.5 lakh a year) is eligible for tax deduction under Section 80C. The interest you earn and the maturity amount, both are completely tax-free. In simple words, the government not only protects your money but also saves you from paying extra tax.
Conclusion
If you deposit ₹71,000 every year in the Post Office PPF scheme, in 15 years you will build a fund of ₹19,25,619. Your actual investment is ₹10.65 lakh, and the rest is pure interest, thanks to the power of compounding. For anyone looking for a safe, tax-free, and long-term saving option, PPF is one of the best choices available in India.
Disclaimer
This article is meant only for educational and general awareness purposes. Interest rates in PPF are revised by the government every quarter. Before investing, please check the latest rate and rules on the official post office or government website.
