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PPF: The PPF scheme is amazing; investing Rs 7,000 every month can create a fund of Rs 57.72 lakh..

Shikha Saxena | December 2, 2025 3:15 PM CST

While the investment sector offers numerous options, the PPF scheme is considered a highly secure one. Because it's a government-funded scheme and is not directly affected by market fluctuations, investors' funds grow with fixed returns. If you deposit ₹7,000 every month, you can accumulate a corpus of approximately ₹57.72 lakh upon maturity. Let's understand its interest rates and calculations in simple terms.

What is the PPF Scheme?

PPF is a government-funded, secure long-term savings scheme that offers good interest and tax relief. Deposits are completely safe, and returns are guaranteed. PPF has a lock-in period of 15 years, making it a good option for long-term goals such as retirement, children's education, or marriage. This is a Government-guaranteed scheme, with interest rates that change periodically. Currently, PPF offers an annual interest rate of 7.1%. Its biggest advantage is that the money is completely safe, and tax benefits are also available.

How to build a large fund?
If a person deposits Rs. 7,000 every month, or Rs. 84,000 annually, into PPF, this amount grows to approximately Rs. 20 lakh in 15 years. However, if the investor continues this scheme for 25 years, the magic of compounding is evident, and this amount grows to approximately Rs. 57.72 lakh.

This scheme is especially suitable for those who want to secure their future. PPF is a reliable option for working individuals, small businesses, or those who are risk-averse. By investing a small amount every month, they can build a large fund for their children's education, marriage, or retirement. Another advantage of PPF is that investments in it are tax-deductible under Section 80C. Furthermore, the entire maturity amount is completely tax-free. This means that the investor gets the benefit of tax savings along with safe returns.

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