Post Office Scheme : The Government of India offers several small savings schemes through the post office, catering to individuals who seek safe investment options with guaranteed returns. Among these, there exists a highly popular and accessible scheme that allows individuals to start saving with as little as ₹100 and build a corpus of up to ₹18 lakh over time. This scheme is ideal for middle-class families, students, women, and anyone looking to create long-term wealth with minimal risk.
In this article, we will explore the complete details of this scheme, including the investment structure, interest benefits, maturity amount, eligibility criteria, and how you can get started.
Post Office Scheme : What is the ₹100 Post Office Saving Scheme?
This attractive saving opportunity is part of the Public Provident Fund (PPF) scheme – a government-backed long-term savings instrument that offers tax benefits and guaranteed returns. With consistent and disciplined monthly deposits starting from ₹100, investors can accumulate a large sum over a period of 15 years due to the power of compounding.
Key Features of the PPF Scheme
- Minimum monthly deposit: ₹100
- Maximum annual deposit: ₹1.5 lakh
- Tenure: 15 years (can be extended in blocks of 5 years)
- Interest rate: 7.1% per annum (compounded annually)
- Tax benefits under Section 80C of the Income Tax Act
- Interest and maturity amount are fully tax-free
- Government-backed and risk-free
See More : Dearness Allowance Rises by 4%
How ₹100 Monthly Can Grow to ₹18 Lakh
One of the most fascinating aspects of the PPF scheme is its compounding benefit. By consistently contributing ₹12,000 annually (₹1000 per month or ₹100 a day in small contributions from different family members), and with the interest reinvested, the corpus can grow significantly.
Let’s look at the table below that shows the accumulation with consistent monthly investments.
Table 1: ₹100 Per Day (₹3000/Month or ₹36,000/Year) – Maturity Value in 15 Years at 7.1% Interest
| Year | Total Investment (₹) | Interest Earned (₹) | Total Value (₹) |
|---|---|---|---|
| 1 | 36,000 | 1,278 | 37,278 |
| 3 | 1,08,000 | 13,062 | 1,21,062 |
| 5 | 1,80,000 | 37,028 | 2,17,028 |
| 7 | 2,52,000 | 74,643 | 3,26,643 |
| 10 | 3,60,000 | 1,48,115 | 5,08,115 |
| 12 | 4,32,000 | 2,29,282 | 6,61,282 |
| 15 | 5,40,000 | 3,79,371 | 9,19,371 |
Table 2: ₹200 Per Day (₹6000/Month or ₹72,000/Year) – Maturity Value in 15 Years at 7.1% Interest
| Year | Total Investment (₹) | Interest Earned (₹) | Total Value (₹) |
|---|---|---|---|
| 1 | 72,000 | 2,556 | 74,556 |
| 3 | 2,16,000 | 26,124 | 2,42,124 |
| 5 | 3,60,000 | 74,056 | 4,34,056 |
| 7 | 5,04,000 | 1,49,286 | 6,53,286 |
| 10 | 7,20,000 | 2,96,230 | 10,16,230 |
| 12 | 8,64,000 | 4,58,564 | 13,22,564 |
| 15 | 10,80,000 | 7,58,742 | 18,38,742 |
These projections show how a disciplined approach to saving – even in small amounts – can generate wealth over the long term.
Benefits of Investing in PPF with Small Amounts
- Encourages financial discipline and saving habits
- Accessible to everyone including students and daily wage earners
- Can be opened with just ₹100
- Interest is compounded annually, enhancing long-term returns
- Entire amount is tax-free on maturity
- Excellent retirement planning tool
- Safe, government-guaranteed investment
Eligibility Criteria and Account Opening Process
- Available to all Indian residents
- One PPF account per individual (except on behalf of a minor)
- Joint accounts are not permitted
- Account can be opened at any post office or authorized bank
Steps to Open a PPF Account
- Visit your nearest post office or authorized bank branch
- Fill out the PPF account opening form (Form A)
- Submit KYC documents: Aadhaar, PAN, address proof, passport-size photo
- Make a minimum deposit of ₹100
- Once the account is opened, you will receive a passbook with all transaction records
Documents Required
- Aadhaar Card
- PAN Card
- Passport-size photograph
- Residential address proof (utility bill/bank statement)
Tips to Maximize Returns from the Scheme
- Deposit the full yearly amount (up to ₹1.5 lakh) before April 5 each year to maximize interest
- Continue contributions regularly without breaking the cycle
- Renew the scheme after 15 years for another 5 years to compound your wealth further
- Use online facilities for tracking and contributing to your account
Who Should Consider This Scheme?
This Post Office PPF Scheme is best suited for:
- Salaried employees planning long-term tax-free savings
- Students or young earners starting their investment journey
- Homemakers or senior citizens seeking guaranteed income
- Individuals planning for retirement or their child’s higher education
Why PPF Is Better Than Other Savings Schemes
| Feature | PPF | Fixed Deposit (FD) | Recurring Deposit (RD) |
|---|---|---|---|
| Tenure | 15 years | 1 to 10 years | 6 months to 10 years |
| Interest Rate | 7.1% (compounded yearly) | 6%–7% | 5.5%–6.5% |
| Tax Benefits | Full EEE benefit | Only up to ₹1.5 lakh | Limited tax savings |
| Risk Level | Zero (Govt-backed) | Low to medium | Low |
| Returns on ₹1.5L/year | Approx ₹40 lakh in 15 yrs | ₹33–35 lakh | ₹30–32 lakh |
| Loan Facility | Yes (from 3rd to 6th year) | Not always | Not available |
Saving ₹100 a day may seem like a small step, but when done consistently through a trusted scheme like the Post Office PPF, it can yield massive returns over the long run. With an interest rate of 7.1% and tax-free maturity benefits, this is one of the safest and most rewarding investment options for all income groups.
If you’re looking to secure your financial future without taking any risk, start this scheme today and unlock the power of compounding. The earlier you begin, the larger your savings will grow.
Interest rates and scheme rules are subject to change based on government notifications. Please confirm the latest rates and terms at your nearest post office or official website before investing.
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