Monthly Savings Scheme: Save Just Rs 1,900 a Monthly and Get Rs 1 Crore

The Central Government offers several savings schemes for the public, and one of the most popular and secure among them is the Public Provident Fund (PPF). Millions of Indians invest in this government-backed scheme because it offers attractive interest rates, tax benefits, and loan facilities. Since it is backed by the Government of India, your investment remains completely safe.

One of the biggest advantages of the PPF scheme is that parents can also open an account in the name of their minor children. Starting a PPF account at an early age can help build a substantial corpus for a child’s higher education, marriage, or other future financial needs.

How to Open a PPF Account for Your Child:

Many parents invest in fixed deposits or post office schemes to secure their children’s future. However, a PPF account is considered one of the best long-term investment options because it can be started with a very small amount.

Interest Rate: The current PPF interest rate is 7.10% per annum.

Tenure: The scheme has a 15-year lock-in period, which can be extended indefinitely in blocks of five years after maturity.

Investment Limit: You can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. The amount can be deposited either as a lump sum or in installments throughout the year.

Tax Benefits: PPF falls under the EEE category, meaning the investment, interest earned, and maturity amount are all completely tax-free.

How to Build a Rs 1 Crore Corpus:

If you open a PPF account for your child soon after birth, you can accumulate a significant corpus over the long term.

Option 1: Start at Birth

If you invest just Rs 1,900 per month from the time your child is born, the PPF account can grow to approximately Rs 1.02 crore over 50 years (assuming continued extensions and the prevailing interest rate). During this period, your total investment will be only around Rs 11.40 lakh, while the remaining amount will come from compounded interest.

Option 2: Start When Your Child Is 5 Years Old

If you open the account when your child turns five, you would need to invest approximately Rs 2,700 per month. Over the next 45 years, the account can also accumulate to around Rs 1.02 crore, including interest.

Smart Investment for Your Child’s Future:

Starting a PPF account early is one of the smartest ways to secure your child’s financial future. With government-backed safety, tax-free returns, and the power of long-term compounding, the scheme can help create a substantial corpus for major life goals.

Disclaimer: The above calculations are illustrative and are based on the current PPF interest rate of 7.10%. Since PPF interest rates are reviewed by the Government periodically, actual maturity values may vary depending on future rate revisions.