Post Office PPF Scheme: When it comes to securing the future of our children or building a retirement fund, many people trust the Post Office PPF (Public Provident Fund). And it makes sense this scheme is backed by the Government of India offers tax benefits and creates a large corpus over time. Think about it if you put aside just ₹92,000 every year, this small step can turn into a huge amount after a few years thanks to the power of compounding.
Interest Rate and Lock-in Period
Currently, the PPF interest rate is 7.1% per annum (compounded yearly). The lock-in period is 15 years, but it can be extended further if you wish. Because of the long tenure, the effect of compounding works beautifully and grows your money significantly.
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Exact Calculation on ₹92,000 Investment
| Yearly Investment | Tenure | Interest Rate | Total Investment | Maturity Amount |
|---|---|---|---|---|
| ₹92,000 | 15 years | 7.1% | ₹13,80,000 | ₹24,95,168 |
So, with a total investment of ₹13.8 lakh over 15 years, you will receive around ₹24.95 lakh at maturity.
Why This Investment Makes Sense
The biggest advantage of PPF is not just safety but also the tax benefit under Section 80C, where you can claim up to ₹1.5 lakh per year. Imagine a parent saving for their child’s higher education after 15 years, they’ll have nearly ₹25 lakh ready, without needing to take any loan or borrow from anyone. That’s the real strength of this scheme.
Conclusion
The Post Office PPF Scheme is one of the safest and most rewarding options for long-term savings. By investing just ₹92,000 annually, you can build a fund of nearly ₹25 lakh in 15 years. Whether it’s for your child’s education, marriage, or your own retirement, PPF ensures financial security with guaranteed returns.
Disclaimer
This article is only for educational and general awareness purposes. Interest rates and rules may change from time to time. Please check with official sources or consult a financial advisor before making any investment decision.
