Post Office Scheme: Invest ₹11,000 Monthly and Get ₹90 Lakh Returns – A Game-Changing Savings Plan

The Post Office Public Provident Fund (PPF) is among the most trusted long-term investment schemes in India. Backed by the Government of India, this scheme offers a 7.1% interest rate per annum, making it a safe and attractive option for investors. One of the key benefits of PPF is that it provides tax exemptions under Section 80C of the Income Tax Act.

Where to Open a PPF Account: Post Office vs. Bank

You can open a PPF account either at a post office or a nationalized/private bank. Both offer the same interest rate and benefits. The choice depends solely on the investor’s personal preference and convenience.

Who is Eligible to Open a PPF Account?

• Any resident Indian adult can open a PPF account.
• A guardian can also open a PPF account on behalf of a minor.
• An individual is allowed to hold only one PPF account, either in a bank or post office.

PPF Deposit Limits: Minimum and Maximum

• The minimum deposit allowed per year is ₹500.
• The maximum deposit permitted is ₹1.5 lakh per year, including deposits in a minor’s account.
• Deposits can be made in lump sum or installments (maximum 12 in a year).

Lock-In Period and Withdrawal Rules

The PPF scheme comes with a 15-year lock-in period. Partial withdrawals are permitted only after 5 years (excluding the year of account opening). The maximum withdrawal allowed is 50% of the balance at the end of the fourth or immediately preceding year, whichever is lower.

What Happens After Maturity?

At the end of 15 years:

• You can close the account and withdraw the full amount.
• Or you can extend the account in blocks of 5 years, with or without making further contributions.
• Interest will continue to be earned during the extension period.

Estimated Corpus with Monthly PPF Investment

Let’s look at potential earnings with monthly investments of ₹4,000, ₹8,000, and ₹11,000 over 25 years at 7.1% annual interest.

₹4,000 Monthly Investment

• Annual Contribution: ₹48,000
• Total Investment Over 25 Years: ₹12,00,000
• Estimated Interest Earned: ₹20,98,565
• Maturity Amount: ₹32,98,565

₹8,000 Monthly Investment

• Annual Contribution: ₹96,000
• Total Investment Over 25 Years: ₹24,00,000
• Estimated Interest Earned: ₹41,97,130
• Maturity Amount: ₹65,97,130

₹11,000 Monthly Investment

• Annual Contribution: ₹1,32,000
• Total Investment Over 25 Years: ₹33,00,000
• Estimated Interest Earned: ₹57,71,053
• Maturity Amount: ₹90,71,053

Final Thoughts

The Post Office PPF Scheme is ideal for individuals seeking a safe, long-term investment with tax-saving benefits. Even with small monthly contributions, it can lead to substantial wealth accumulation over 25 years. It is an excellent option for risk-averse investors and those planning for retirement or long-term goals.