The Post Office Public Provident Fund (PPF) Scheme is counted among the most secure and trusted savings plans in the country. The interest earned in this scheme is fully guaranteed by the government, which is why millions of people prefer it to build a financial cushion for the future. For example, if you deposit ₹22,000 every year, after fifteen years you will receive a maturity amount of around ₹5,96,671. Let’s understand how this calculation works in detail.
Deposit Rules and Interest Rate in PPF
Under the PPF scheme, the minimum deposit required is ₹500 per year, while the maximum limit is ₹1.5 lakh annually. The interest rate is reviewed and decided by the government every quarter. At present, the PPF account offers an annual interest of 7.1 percent. Since the interest is compounded annually, the returns gradually increase over time, helping you build a large fund with consistent savings.
Example of Annual Investment of ₹22,000
If a person deposits ₹22,000 every year for 15 years, the total amount invested will be ₹3,30,000. With the addition of compound interest at 7.1 percent annually, the maturity amount will grow to approximately ₹5,96,671. Out of this, around ₹2,66,671 will be the interest earned on the invested sum, which highlights the power of compounding in this scheme.
PPF Calculation Snapshot
- Annual Investment: ₹22,000
- Tenure: 15 Years
- Interest Rate: 7.1%
- Total Deposited: ₹3,30,000
- Interest Earned: ₹2,66,671
- Maturity Value: ₹5,96,671
This calculation shows how even a modest saving of just over three lakh rupees can result in a nearly six lakh rupee corpus due to compounded interest.
Tax Benefits and Security
One of the biggest advantages of the PPF scheme is that the deposits, the interest earned, and the final maturity amount are all completely tax-free. This benefit is available under Section 80C of the Income Tax Act. In addition, the account cannot be attached by any court order, which provides an extra layer of security to your savings.
A Smart Choice for Family and Children’s Future
The PPF scheme is an excellent choice for building a fund for your child’s education or marriage. Since it comes with a lock-in period of 15 years, the money remains safe for the long term and cannot be withdrawn easily. This not only ensures financial discipline but also prevents unnecessary spending, helping you accumulate a reliable fund over time.
Why Choose Post Office PPF Scheme
In today’s times, when investment options like stock markets or mutual funds carry a higher level of risk, the Post Office PPF scheme stands out as a safe alternative. The returns are not influenced by market volatility, nor is there any fear of losing your capital. For anyone who wants to start small and gradually build a strong financial base, this scheme is one of the most practical and reliable options.
Conclusion
By investing just ₹22,000 each year in the Post Office PPF scheme, you can accumulate nearly ₹5,96,671 in 15 years. The scheme is tax-free, government-backed, and completely secure, making it a perfect choice for individuals who want safe and risk-free savings.
Disclaimer
This article is for informational purposes only. The calculations are based on the current interest rate of 7.1 percent. Interest rates are subject to change, so it is advisable to check the latest rates and rules with the Post Office or the official government website before making any investment decision. This should not be taken as financial advice.
