Maximise Returns & Save Tax with PPF – Here’s the Exact Math!
The Public Provident Fund (PPF) is one of India’s safest and most trusted investment options. It is a long-term savings scheme backed by the Government of India. Not only does it offer stable, guaranteed returns, but it also comes with tax benefits.
Wondering how much your money will grow in 15 years? Let’s break it down.
Why PPF is India’s Most Popular Tax-Saving Investment
PPF combines three benefits in one account:
- Guaranteed Returns: Backed by the central government.
- Tax-Free Earnings: Interest earned is tax-free.
- Section 80C Benefit: Up to ₹1.5 lakh investment per year is tax-deductible.
You can start investing with as little as ₹500 annually. The maximum limit is ₹1.5 lakh per year.
The current PPF interest rate is 7.1% per annum, compounded yearly.
How Much Will ₹1.5 Lakh Per Year Grow in 15 Years?
Let’s assume you invest ₹1.5 lakh every year for 15 years without fail. Here’s the projection:
| Year | Total Investment (₹) | Interest Earned (₹) | Total Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,650 | 1,60,650 |
| 5 | 7,50,000 | 2,43,464 | 9,93,464 |
| 10 | 15,00,000 | 7,72,816 | 22,72,816 |
| 15 | 22,50,000 | 18,18,209 | 40,68,209 |
In 15 years, you invest ₹22.5 lakh, and your account grows to over ₹40 lakh. That’s a gain of ₹18 lakh—100% tax-free.
Monthly Investment Options – What Will You Get?
Here’s how much you can accumulate if you invest smaller amounts monthly:
| Monthly Investment (₹) | Total Investment (15 Years) | Maturity Amount (₹) |
|---|---|---|
| 2,000 | 3,60,000 | 6,50,000 (approx.) |
| 3,000 | 5,40,000 | 9,75,000 (approx.) |
| 5,000 | 9,00,000 | 16,20,000 (approx.) |
Even small monthly amounts can help you build wealth steadily over 15 years, thanks to compounding and tax-free returns.
What Happens After 15 Years?
At maturity, you have three choices:
- Withdraw Everything: Take out the full amount, tax-free.
- Extend Without Contribution: Let the amount earn interest, without adding new money.
- Extend With Contribution: Continue investing and get Section 80C benefits.
Did You Know?
You can open a PPF account for your minor child.
This doubles your family’s savings and tax benefits legally!
Start your PPF journey today and watch your savings grow securely over time. Small monthly investments can create big, tax-free wealth. Don’t miss the chance to combine safety, tax savings, and steady returns—all in one trusted scheme.
