₹12,500/Month in PPF: Your 15-Year Tax-Free
Investing ₹12,500 every month in PPF for 15 years can build a corpus of over ₹40 lakh — completely tax-free. Here's how it works and why every salaried Indian should consider it.
₹12,500/month is roughly what many Indians spend on dining out — redirect it and retire richer.
Your PPF corpus after 15 years on ₹12,500/month — fully exempt from tax
Key Takeaways
Open a PPF account today at any post office or major bank (SBI, HDFC, ICICI) — it takes under 30 minutes online.
Set up a monthly auto-debit of ₹12,500 on the 1st of every month to ensure interest is calculated on the full monthly balance.
If you already have a PPF account, check your deposit history — contributing before the 5th of each month maximises your interest for that month.
Investing ₹12,500 every month in PPF for 15 years can build a corpus of over ₹40 lakh — completely tax-free. Here's how it works and why every salaried Indian should consider it.
Here's what happened: PPF currently offers 7.1% annual interest, compounded yearly — guaranteed by the Government of India with zero market risk.. At ₹12,500/month (₹1.5 lakh/year — the maximum allowed), your total investment over 15 years is ₹22.5 lakh; the rest is interest.. PPF enjoys EEE tax status — your contribution, interest earned, and maturity amount are all fully exempt from income tax..
What you should do: Open a PPF account today at any post office or major bank (SBI, HDFC, ICICI) — it takes under 30 minutes online.. Set up a monthly auto-debit of ₹12,500 on the 1st of every month to ensure interest is calculated on the full monthly balance.. If you already have a PPF account, check your deposit history — contributing before the 5th of each month maximises your interest for that month..
Deposit before the 5th of every month — PPF interest is calculated on the lowest balance between the 5th and end of the month. One day late = one month's interest lost.
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