Post Office Saving Scheme: Post Office Public Provident Fund (PPF) is a great investment option. It is beneficial as the investment can start with less amount and good returns can still be expected for later. The risk in this scheme is almost zero and is protected by the government. PPF account can be opened by visiting any nearest post office. Any citizen of the country can open this account. At present, the scheme is giving interest of 7.10 percent.


Highlights of the plan



  • This plan comes with EEE status. In this, tax benefits are available in three parts. Contribution, interest income and maturity amount, all three are tax free.

  • The benefit of tax exemption is available under section 80C of the Income Tax Act.

  • PPF account can be opened with only Rs 500. But later it is necessary to deposit Rs 500 every year in one go.

  • Only a maximum of Rs 1.5 lakh can be deposited in this account every year.

  • This scheme is for 15 years, from which it cannot be withdrawn in the middle. But it can be extended for 5-5 years after 15 years.


Benefit Of Compound Interest


Post office PPF account matures in 15 years. The money deposited in this account earns compound interest. Think of it like this, if you deposited Rs 500 on which interest of Rs 30 was received in one year, then from next year the interest will be calculated on Rs 530.


If deposited 500 rupees every month



  • A deposit of Rs 500 will make Rs 90,000 if the deposit is for 15 years.

  • The interest on this will be Rs 67,784.

  • This means that after 15 years you will get a total of Rs 1,57,784.


If deposited 1000 rupees every month



  • If you deposit Rs 1,000 in the PPF account every month, then you will deposit a total of 1,80,000 in 15 years.

  • On this, you will get an interest of Rs 1,35,567.

  • 3,15,567 will be available on maturity after 15 years.


On depositing 2 thousand rupees every month



  • If you deposit 2 thousand rupees every month, then you will deposit 3,36,000 rupees in 15 years.

  • 2,71,135 interest will be made.

  • This means that you will get Rs 6,31,135 in your hand.


How much will you get on depositing 10 thousand every month



  • If you deposit Rs 10,000 every month, then the total deposit amount in 15 years will be Rs 18,00,000.

  • On this, Rs 13,55,679 will be available as interest.

  • That is, after 15 years, Rs 31,55,679 will come in your account.