Rising education costs are a major concern for every parent today. From school fees to higher education, expenses often run into lakhs of rupees, putting financial pressure on middle-class families. The best way to handle this burden is through early and disciplined savings—and one of the safest options available is the Public Provident Fund (PPF) Scheme offered by Post Offices.
The Post Office Public Provident Fund (PPF) is a long-term savings plan backed by the Government of India. It allows small but regular deposits that grow into a significant corpus over time.
Minimum investment: ₹500 per year
Maximum investment: ₹1.5 lakh per year
Tenure: 15 years
Current interest rate: 7.1% per annum (fully tax-free)
This makes PPF ideal for middle-class families who want to secure their children’s education without taking risks.
Even modest, consistent savings can create a large fund. For example:
Saving ₹70 per day = about ₹2,100 per month
That equals ₹25,200 per year
Over 15 years, the total deposit = ₹3.75 lakh
With 7.1% annual interest (compounded), the maturity value = around ₹6.78 lakh
This means, by simply saving ₹70 daily, parents can build nearly ₹7 lakh—just in time for their child’s higher education.
Government-backed security – no market risks
Fixed interest rate – predictable maturity value
Tax benefits – deposits, interest, and maturity are all tax-free under Section 80C
Affordable entry – start with as little as ₹500 per year
Long-term discipline – ensures funds are ready when needed most
Helps parents plan ahead for education expenses
Builds a dedicated fund for college admissions or professional courses
Ensures financial independence without relying on loans or debts
The Post Office PPF scheme is a secure, tax-free, and disciplined savings plan that transforms small daily contributions into a significant financial resource. For parents looking to safeguard their child’s future, saving just ₹70 a day can turn into ₹7 lakh at maturity, offering both peace of mind and financial stability.
| Feature / Scheme | PPF (Public Provident Fund) | SSY (Sukanya Samriddhi Yojana) | Bank Fixed Deposit (FD) | Mutual Funds (Equity-based) |
|---|---|---|---|---|
| Who Can Invest? | Any Indian citizen | Parents of a girl child (up to age 10) | Any bank customer | Any investor (18+) |
| Tenure | 15 years (extendable in 5-yr blocks) | 21 years (or until girl marries after 18) | 7 days – 10 years | Flexible (no lock-in, except ELSS = 3 yrs) |
| Min. Investment | ₹500 per year | ₹250 per year | Varies (₹1,000–₹10,000 typical) | ₹500 (SIP) |
| Max. Investment | ₹1.5 lakh per year | ₹1.5 lakh per year | No strict limit | No strict limit |
| Interest Rate (2025) | 7.1% (tax-free) | 8.2% (tax-free) | 6–7% (taxable) | 10–15% (market-linked) |
| Risk Level | Very Low (Govt. backed) | Very Low (Govt. backed) | Low (bank-backed) | High (market volatility) |
| Tax Benefits | EEE (Exempt-Exempt-Exempt) | EEE (Exempt-Exempt-Exempt) | Interest taxable | ELSS funds eligible u/s 80C |
| Best For | Long-term savings, children’s education | Girl child’s higher education & marriage | Short-to-medium term savings | Long-term wealth creation |
| Liquidity | Partial withdrawal after 7 years | Partial withdrawal after 18 years | Premature withdrawal with penalty | High liquidity (except ELSS) |
| Maturity Example | ₹70/day = ₹6.78 lakh in 15 years | ₹70/day = ₹8.2 lakh in 15 years | ₹70/day = ₹5–5.5 lakh in 15 years | ₹70/day = ₹12–15 lakh in 15 years (estimated) |
PPF → Safe, tax-free, ideal for all families (best for disciplined, risk-free growth).
SSY → Higher returns than PPF, but only for a girl child.
FD → Safer than markets, but lower returns + taxable.
Mutual Funds → Best long-term growth, but risk of market ups/downs.