Investing smartly can turn small savings into significant wealth over time. One such popular and reliable option in India is the Post Office Public Provident Fund (PPF) Scheme. But did you know that by saving just ₹ 70 per day, you can make a profit of over ₹ 3 lakh? Sounds intriguing, right? In this article, we will break down the exact calculation and show you how you can grow your money safely and tax-free with the PPF scheme.
PPF Profit of ₹ 3 Lakh by Saving ₹ 70 Daily
| Details | Information |
|---|---|
| Scheme Name | Public Provident Fund (PPF) |
| Daily Savings Amount | ₹ 70 |
| Monthly Investment | ₹ 2,100 |
| Annual Investment | ₹ 25,200 |
| Interest Rate (as of 2025) | 7.1% p.a. (Compounded annually) |
| Investment Tenure | 15 to 18 years |
| Total Investment (15 years) | ₹ 3,78,000 |
| Maturity Amount (Approx. 18 years) | ₹ 7,87,404 |
| Total Profit (Interest Earned) | Over ₹ 3 Lakh |
| Tax Benefits | Under Section 80C & Tax-Free Returns |
Saving just ₹ 70 per day in the Post Office PPF Scheme is a simple, safe, and effective way to build wealth over time. By consistently investing, you can easily accumulate a profit of over ₹ 3 lakh in 18 years. The scheme offers tax benefits, guaranteed returns, and flexibility, making it ideal for anyone looking to secure their financial future.
Why Choose PPF Scheme?
The Public Provident Fund (PPF) is one of the most trusted long-term saving schemes backed by the Government of India. It offers attractive interest rates, tax benefits, and assured returns, making it perfect for risk-averse investors. Let’s explore how your daily ₹ 70 saving habit can lead to substantial profits over time.
see also: Get Bumper Returns in 5 Years by Saving Just ₹ 600 Every Month
Understanding PPF Basics
What is PPF?
The Public Provident Fund (PPF) is a long-term savings-cum-tax-saving scheme. It encourages small savings by offering guaranteed returns along with tax benefits.
Features of PPF:
- Minimum deposit: ₹ 500/year
- Maximum deposit: ₹ 1.5 lakh/year
- Lock-in period: 15 years (extendable in 5-year blocks)
- Interest rate: Currently 7.1% p.a., compounded annually
- Tax exemption: Investment, interest, and maturity amount are all tax-free under EEE (Exempt-Exempt-Exempt) status
How Saving ₹ 70 Daily Leads to ₹ 3 Lakh Profit
Step 1: Small Daily Savings
If you consistently save ₹ 70 per day, your monthly savings become:
₹ 70/day × 30 days = ₹ 2,100/month
This translates to an annual contribution of ₹ 25,200.
Step 2: Power of Compounding Interest
The 7.1% annual interest rate, compounded annually, plays a major role in wealth creation. Let’s break down how much you will accumulate:
| Year | Annual Investment (₹) | Total Investment (₹) | Interest Earned (₹) | Total Corpus (₹) |
|---|---|---|---|---|
| 1 | 25,200 | 25,200 | 896 | 26,096 |
| 5 | 25,200 x 5 = 1,26,000 | 1,26,000 | 24,134 | 1,50,134 |
| 10 | 2,52,000 | 2,52,000 | 1,02,954 | 3,54,954 |
| 15 | 3,78,000 | 3,78,000 | 2,43,180 | 6,21,180 |
| 18 | 4,53,600 | 4,53,600 | 3,33,804 | 7,87,404 |
By continuing your small savings habit for 18 years, you will have earned over ₹ 3 lakh in profit!
Why Is PPF Ideal for This Strategy?
- Government-Backed Safety: Your money is 100% secure.
- Attractive Returns: 7.1% is much higher than typical savings accounts.
- Tax-Free Earnings: Both the principal and interest are tax-exempt.
- Compounding Effect: Longer tenure maximizes returns.
- Flexible Contributions: Even if you miss a day, you can adjust within the year.
How to Open a PPF Account
Opening a PPF account is simple:
- Visit your nearest Post Office or any authorized bank (SBI, ICICI, HDFC, etc.).
- Fill out the PPF account opening form.
- Submit:
- Aadhar Card
- PAN Card
- Passport-size photo
- Initial deposit (minimum ₹ 500)
- Account gets activated, and you can deposit monthly or yearly as per convenience.
Tips to Maximize Your PPF Returns
- Deposit Early in the Financial Year: Interest is calculated on the lowest balance between the 5th and last day of the month.
- Avoid Partial Withdrawals: Keep the full amount intact for compounding benefits.
- Opt for Full 15-Year Tenure: If possible, extend in 5-year blocks after maturity.
- Use PPF for Long-Term Goals: Ideal for retirement, child’s education, or marriage.
see also: Will the Interest Rates on Small Savings Schemes Change from April 2025?
PPF Scheme FAQs
1. Can I save more than ₹ 70 per day in PPF?
Yes, you can invest up to ₹ 1.5 lakh per year. Saving more will result in higher returns.
2. Is there any penalty if I miss monthly deposits?
No penalty, but you must deposit at least ₹ 500 per financial year to keep the account active.
3. Can I withdraw money before 15 years?
Partial withdrawals are allowed after the 7th year, but full withdrawal only after 15 years.
4. Is PPF better than fixed deposits?
For long-term savings, PPF is better because of tax-free returns and higher interest rates.
5. Can I extend the PPF account after 15 years?
Yes! You can extend in 5-year blocks, with or without contributions.
