When it comes to safe investments with steady returns, government-backed schemes are always a reliable choice. Among them, the Public Provident Fund (PPF) is one of the most trusted long-term savings options. With just ₹500, you can start your journey, and over time, this disciplined saving can grow into ₹40 lakh.
The PPF is guaranteed by the Central Government, which makes it one of the safest investment products. Currently, it offers 7.1% annual interest, reviewed every quarter. Both the invested amount, the interest earned, and the maturity value fall under the EEE (Exempt-Exempt-Exempt) category, meaning they are completely tax-free. Investors can also claim deductions under Section 80C of the Income Tax Act.
Minimum Investment: ₹500 per year
Maximum Investment: ₹1,50,000 per year
Tenure: 15 years (extendable in 5-year blocks)
If you invest ₹12,500 per month (₹1.5 lakh annually – the maximum allowed), over 15 years, your total contribution will be ₹22.5 lakh. At the current 7.1% interest rate, you will earn about ₹18.18 lakh as interest. That means at maturity, you receive around ₹40.68 lakh — nearly double your investment.
(Note: Returns may change slightly if the government revises interest rates.)
Loan Facility: Available from the 3rd year.
Partial Withdrawals: Possible after 5 years.
Account Opening: In any post office or authorized bank branch.
Risk-Free: Since it’s government-backed, your money is fully secure.
Deposit at least once every year to keep the account active.
Inactive accounts can be reactivated with a penalty.
Best suited for long-term financial goals and retirement planning.
The Post Office PPF scheme is a simple yet powerful way to build wealth. Starting with as little as ₹500, you can secure up to ₹40 lakh in the long run — that too with zero market risk and full tax benefits. For middle-class families and salaried individuals, this scheme is one of the best ways to achieve financial security.