Public Provident Fund (PPF) is a savings plan started by the Government of India.
It runs for 15 years and gives a fixed interest rate.
The rate is decided every three months and is usually between 7% and 8%.
PPF also gives tax benefits.
Money you put in is allowed under Section 80C, the interest is tax-free, and even the maturity amount has no tax.
That is why many people in India choose PPF as their safe investment option.
How 12,500 Per Month Becomes 40 Lakhs
If you invest ₹12,500 every month, that makes ₹1.5 lakh in one year.
This is the maximum allowed in PPF each year.
After 15 years of regular deposits and interest growth, the amount can become nearly ₹40 lakhs.
Here is a simple view:
| Monthly Deposit | Yearly Deposit | Total Years | Approx Maturity Value |
| ₹12,500 | ₹1.5 lakh | 15 years | Around ₹40 lakhs |
This money grows slowly but surely.
It is safe and guaranteed by the Government.
Why PPF Is Safe
PPF is not linked to the stock market.
This means the value does not go up and down like shares.
Both the money you invest and the interest you earn are 100% safe.
Because it is backed by the Government, you do not have to worry about losing your money.
This makes it the best choice for people who want zero risk.
It is also good for future needs like retirement or children’s education.
Tax Benefits of PPF
PPF is called an EEE scheme.
EEE means Exempt-Exempt-Exempt.
That means:
- Your investment gets deduction under Section 80C.
- Interest earned is tax-free.
- Final maturity amount is also tax-free.
These three benefits make PPF more rewarding.
You save tax and also grow your money safely.
Who Should Choose PPF
PPF is best for people who can save money every month for many years.
It is good for salaried people, professionals, and families.
It needs patience because the lock-in is 15 years.
If you want safety, tax savings, and fixed returns, this plan is for you.
It helps in building wealth slowly without risk.
Conclusion
Putting ₹12,500 every month in Post Office PPF is more than saving, it is future planning.
You get fixed returns, tax savings, and full government security.
After 15 years, you can get about ₹40 lakhs, which can support you and your family in the future.
FAQs
What is PPF?
A government savings scheme for 15 years.
What is the interest rate of PPF?
Around 7% to 8%.
What is the maximum yearly deposit in PPF?
₹1.5 lakh.
Is PPF money safe?
Yes, fully backed by the Government.
Is PPF tax-free?
Yes, both interest and maturity are tax-free.