Every parent today worries about how to secure their child’s future. From education to marriage and career, financial support is needed at every step. If parents start saving small amounts early and invest them in the right place, they can build a strong financial foundation over time. One such option is the Post Office Public Provident Fund (PPF) scheme. It is a government-backed plan that ensures safety, offers attractive interest rates, and also provides tax benefits. The power of compounding over the years can turn small savings into a large fund.
Why PPF is the Right Option for Children
The biggest advantage of the PPF scheme is that it is completely safe and guaranteed. The money deposited in the account is backed by the government. The interest rate is decided every quarter and currently stands at around 7.1% per annum. If parents open an account in the name of their child and invest regularly, they can accumulate a large amount by the end of 15 years. This money can be used without any risk for higher education, marriage, or other important expenses.
How Much Can You Get by Saving ₹90,000 Every Year
Many parents wonder how much they can earn by investing a fixed amount annually. If someone deposits ₹90,000 every year in a Post Office PPF account, the returns can be surprising. The scheme follows compound interest, which means interest is earned not only on the principal but also on the accumulated interest. Over time, the investment grows much faster.
For example, investing ₹90,000 every year for 15 years means a total contribution of ₹13.5 lakh. At the current 7.1% interest rate, the maturity amount after 15 years comes to about ₹24,40,926. This means parents earn nearly ₹10.9 lakh purely as interest.
Long-Term Benefits of PPF
One of the most attractive features of the PPF scheme is that it doesn’t stop after 15 years. Parents can extend it in blocks of 5 years and continue to grow the investment. If the account is opened when the child is young, by the time they grow up the fund can reach crores of rupees. This makes PPF a solid choice for creating a reliable financial foundation for the future.
Tax Benefits Along with Safe Investment
The PPF scheme not only gives good returns but also offers tax savings. Under Section 80C of the Income Tax Act, investments of up to ₹1.5 lakh per year are tax-free. In addition, the interest earned and the maturity amount are also completely exempt from tax. This makes PPF a rare investment option that offers triple benefits safety, growth, and tax savings.
Why Parents Should Choose This Scheme
While many people invest in stocks or mutual funds, those options always carry a level of risk. On the other hand, the Post Office PPF account is fully guaranteed. For families in smaller towns and villages where people prefer safe investments, PPF is the ideal plan for children’s future. Saving ₹90,000 annually may sound like a big amount, but when broken down it comes to just ₹7,500 per month, which is manageable for many households.
Final Thoughts on PPF Scheme
If you want to build a strong financial backup for your child, the Post Office PPF scheme is one of the best options. It ensures safety, provides attractive interest, and helps with tax savings. By investing ₹90,000 every year, parents can build a fund of nearly ₹24.40 lakh in 15 years. Planning early can help avoid financial stress later, especially when it comes to children’s education and marriage.
Disclaimer
The information provided here is for educational and general awareness purposes only. Please consult a certified financial advisor before making any investment decisions.
