PPF Scheme: Build a ₹43 Lakh Fund by Saving Just ₹411 Daily – Know the Simple Math

By Siddhi Jain | Sep 4, 2025, 13:29 IST

Are you looking for a safe investment option that can turn your small daily savings into a large retirement fund? The Post Office Public Provident Fund (PPF) scheme is one of the best choices for long-term wealth creation. Backed by the Government of India, it not only ensures security but also provides the benefit of tax savings and attractive interest rates.

Save ₹411 Daily to Build ₹43 Lakh

Investing in PPF is simple and highly rewarding in the long run. At present, the scheme is offering an annual interest rate of 7.9%.

Here’s the math:

If you save ₹12,500 per month (around ₹411 per day), you will invest a total of ₹1.5 lakh in a year.
The scheme has a 15-year maturity period. By contributing ₹1.5 lakh every year for 15 years, your total investment will grow into a fund of approximately ₹43.60 lakh.
Out of this, around ₹21 lakh will be earned as interest alone.

This shows how consistent small savings can compound into a substantial financial cushion over time.

Tax-Free Benefits Under Section 80C

One of the biggest advantages of PPF is that both the invested amount and the interest earned are tax-free. Under Section 80C of the Income Tax Act, investors can claim deductions of up to ₹1.5 lakh per year.

This means you are not only saving but also maximizing your tax benefits. For individuals who want to grow wealth while reducing tax liability, PPF remains an excellent option.

Government-Backed Security

Since the PPF scheme is fully supported by the Government of India, the money invested is completely secure. It also offers better returns than traditional fixed deposits (FDs) in banks. This reliability is the reason millions of Indians prefer PPF as their first choice for long-term investments.

Additionally, the scheme allows flexibility:

You can invest either a lump sum or in monthly installments (up to 12 in a year).
Investors can start small and increase contributions as per their financial capacity.

Loan Facility Against PPF Balance

Another unique feature of PPF is the option to take a loan against your deposits between the third and sixth year of opening the account. This loan facility can be a lifeline during emergencies as it comes at a low-interest rate and can be repaid in easy terms.

This feature makes PPF not just a savings scheme but also a tool for financial security in times of need.

Easy Online Investment Options

In today’s digital age, the post office has modernized its services. Investors can now make contributions to their PPF accounts online through India Post Payments Bank (IPPB) or the DakPay app.

Simply link your IPPB account with your bank account.
Select the PPF option within the app.
Enter the required details and transfer the money instantly.

This convenience has made PPF even more accessible to young investors who prefer managing their finances digitally.

Key Highlights of PPF Investment

Interest Rate: 7.9% (compounded annually).
Maturity Period: 15 years.
Investment Limit: Minimum ₹500 and maximum ₹1.5 lakh annually.
Tax Benefits: Deductions under Section 80C.
Flexibility: Lump sum or monthly installments.
Loan Facility: Available from 3rd to 6th year.

Final Word

The PPF scheme is one of the safest and most rewarding long-term investment plans in India. With just ₹411 saved daily, you can accumulate a fund of over ₹43 lakh in 15 years, along with complete tax exemptions. For anyone seeking a secure, government-backed, and tax-efficient investment, PPF continues to be an ideal choice.

Disclaimer

This article is for informational and educational purposes only. Investment in PPF or any other financial scheme should be done after careful consideration of your financial goals and consultation with a certified advisor, if necessary. Returns are subject to prevailing government rules and interest rates. The publisher and author are not responsible for any financial decisions made by readers based on this content.