Post Office PPF Scheme: When it comes to safe, long-term savings with tax benefits, the Public Provident Fund (PPF) in the Post Office always stands out. With government backing, fixed interest, and EEE (Exempt-Exempt-Exempt) tax benefits, it is one of the most trusted investment options in India. But many people wonder if they invest ₹36,000 every year, how much will they really get after maturity? Let’s break it down step by step.
Current PPF Interest Rate 2025
As of 2025, the interest rate on PPF is 7.1% per annum, compounded yearly. The lock-in period is 15 years, and you can extend it further in blocks of 5 years.
Read more: PNB FD Scheme: ₹4 Lakh Fixed Deposit Grows to ₹5,45,416 – See Full Calculation
Calculation for ₹36,000 Yearly Investment
If you deposit ₹36,000 (that is ₹3,000 per month) regularly for 15 years, here’s how your savings will grow
| Yearly Deposit | Total Deposit (15 Years) | Interest Rate | Maturity Amount | Total Interest Earned |
|---|---|---|---|---|
| ₹36,000 | ₹5,40,000 | 7.1% | ₹9,76,370 | ₹4,36,370 |
So, by depositing just ₹36,000 per year, you end up with ₹9.76 lakh at maturity. Out of this, ₹5.40 lakh is your own contribution and the rest ₹4.36 lakh is the interest earned.
Why PPF is a Smart Choice
The biggest advantage of PPF is that it’s completely risk-free because it is backed by the Government of India. The returns are fixed and pre-declared, unlike stock market investments. Another huge benefit is tax exemption. The money you deposit, the interest earned, and the maturity amount all are tax-free under Section 80C. For someone with a low or medium income, this scheme works like a disciplined savings tool that builds a big fund for future needs like children’s education, house purchase, or retirement.
Conclusion
By saving ₹36,000 every year in the Post Office PPF scheme, you can build a fund of ₹9,76,370 in 15 years. This is not just a safe investment but also a tax-saving option that helps in long-term wealth creation. If you are looking for a guaranteed return plan with zero risk, PPF is among the best choices in 2025.
Disclaimer
This article is only for educational and general knowledge purposes. Interest rates and maturity values may change as per government updates. Please verify the latest details from the official Post Office or bank before investing.
