Post Office Scheme: Build Rs 40 Lakh Wealth from Just Rs 500

The Post Office Public Provident Fund (PPF) scheme offers 7.1% interest. Invest up to Rs 1.5 lakh yearly and accumulate up to Rs 40 lakh in 15 years. Tax benefits included.

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Author : Ajay Joseph

Published : Sep 02 2025, 04:53 PM IST

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Safe Investment

Post office schemes are a great choice for those looking to safely invest and earn good returns. The PPF is designed for tax-free returns with low risk. It offers 7.1% interest, allowing you to accumulate a large sum through consistent investment.

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7.1% Interest Rate in PPF Scheme

The central government offers a 7.1% annual interest rate on this scheme. This interest is tax-free, making it very beneficial for high-income tax filers. The invested amount, interest earned, and maturity amount are all tax-exempt under Section 80C, falling under the EEE (Exempt-Exempt-Exempt) tax rule.

Post Office Monthly Income Scheme: Earn Rs 9,000 Monthly Safely

Post Office Scheme: Invest Rs 12,500 Per Month to Get Rs 40 Lakh Maturity

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Start with just Rs 500

You can start a Post Office PPF account with just Rs 500. The maximum investment allowed in a financial year is Rs 1,50,000. The investment period is 15 years, extendable in five-year blocks.

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How to accumulate ₹40 lakh?

Suppose you invest the maximum Rs 1.5 lakh annually (Rs 12,500 monthly). Over 15 years, your total investment would be Rs 22,50,000. At 7.1% interest, you'd earn Rs 18,18,209, totaling Rs 40,68,209 upon maturity. Adjust investment amounts as needed.

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PPF Loan Facility

After opening a PPF account, a loan facility is available from the third financial year's end. After five years, you can partially withdraw funds. Open a PPF account at any post office or bank.

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About the Author

Ajay Joseph

With over eight years of journalistic experience, Ajay Joseph Raj. P has been a dedicated member of the Asianet Newsable team, where he serves as the Chief Copy Editor. His expertise spans Business, Career, Stock Market, National, International, and viral/trending topics, with a knack for crafting compelling narratives that connect with diverse audiences.Before joining Asianet Newsable, Ajay honed his skills at OneIndia News and Opoyi English, gaining extensive experience in delivering impactful stories across various beats.