For lakhs of Indians, the Post Office remains one of the most trusted places to save money. Known for its wide range of risk-free schemes, it caters to everyone, from children and women to senior citizens. Backed by government guarantee, these schemes are not only safe but also come with attractive interest rates, making them a reliable choice for small investors.
Among these, the Public Provident Fund (PPF) stands out as one of the most popular options. Small investors often prefer it for long-term savings, as it combines security with steady returns. Currently, the PPF scheme offers a tax-free annual interest rate of 7.1 percent, with investments and maturity proceeds also exempt from tax. However, it comes with a 15-year lock-in period, restricting full withdrawal before maturity. The scheme requires a minimum deposit of Rs 500, while the maximum annual limit is Rs 1.5 lakh, making it accessible even to those with modest incomes.
The returns from PPF can be significant over the long term. For example, an individual investing Rs 12,500 every month would accumulate Rs 22.5 lakh over 15 years. With an additional interest earning of about Rs 17.47 lakh at the current rate of 7.1 percent, the total amount at maturity would stand at nearly Rs 40 lakh. Investors also have the flexibility to increase or decrease their contributions depending on their financial capacity.
Apart from steady growth and tax benefits, the scheme also offers liquidity through a loan facility. Account holders can apply for a loan after the first financial year and make partial withdrawals after completing five years, offering some relief in case of urgent financial needs.
With its mix of safety, tax advantages, and long-term wealth-building potential, PPF remains a preferred savings option for countless Indians. For those seeking secure investments with assured returns, the Post Office scheme continues to be a trusted choice
