Here’s a clear and comprehensive overview of the “₹411-a-day Public Provident Fund (PPF) plan”—what people often refer to as the “411 PPF”—explained in English for easy understanding:
What Is the “₹411-a-Day PPF Plan”?
The name comes from a popular way to visualize disciplined, long-term saving via the PPF:
- The maximum annual contribution allowed in a PPF account is ₹1.5 lakh.
- To break this down:
- Per year: ₹1,50,000
- Per month (approx.): ₹12,500
- Per day (approx.): ₹411 ($1.5 lakh ÷ 365 ≈ ₹411/day)
So, the “₹411-a-day plan” is simply a handy mental model showing how small daily savings can add up to reach the annual limit.
Maturity Amount Over 15 Years
If you consistently deposit the PPF maximum of ₹1.5 lakh annually:
- Total principal over 15 years: ₹22.5 lakh
- With an approximate interest rate of 7.9% p.a., compounded annually (as referred to in some recent projections), you could accrue around ₹43.6 lakh at maturity. Roughly ₹21.1 lakh would be interest.
Note: Some sources still reference the official current PPF interest rate closer to 7.1% p.a., depending on the quarter.F
Here’s what the PPF scheme offers, regardless of the “₹411/day” framing:
1. What Is PPF?
- A long-term, government-backed savings and tax-saving instrument launched in 1968.
2. Investment Limits
- Minimum: ₹500/year
- Maximum: ₹1.5 lakh/year
- Deposits can be made in lumpsum or up to 12 instalments per year.
3. Interest Rate
- Decided each quarter by the Government of India.
- Current rate: ~7.1% p.a., compounded annually.
4. Tax Benefits
- Falls under the EEE (Exempt-Exempt-Exempt) tax category:
- Contributions are deductible under Section 80C (up to ₹1.5 lakh/year).
- Interest earned is tax-exempt.
- Maturity proceeds are also tax-exempt.
5. Tenure & Extensions
- Standard lock-in period of 15 years.
- Upon maturity, you can either:
- Withdraw fully, or
- Extend in 5-year blocks, with or without further contributions.
6. Loans & Withdrawals
- Loans: Allowed from Years 3 to 5, up to 25% of the balance at the end of Year 2. Repayment must be done within 3 years.
- Partial Withdrawals: Allowed from Year 7 onward. You may withdraw up to 50% of the lower balance between:
- End of Year 4, or
- End of the previous year.
7. Premature Closure
Allowed only under specific conditions:
- Serious illness, higher education, or death of account holder.
- A penalty of 1% lower interest applies.
8. Nomination, Revival, & Transfer
- Nomination is permitted.
- Inactive accounts can be revived by paying a penalty and making the missed contributions.
Summary Table
| Feature | Details |
|---|---|
| Daily Equivalent | ₹411/day ≈ ₹12,500/month ≈ ₹1.5 lakh/year |
| Total Deposit (15 yrs) | ₹22.5 lakh |
| Estimated Maturity Corpus | ~₹43.6 lakh (interest ≈ ₹21.1 lakh) |
| Interest Rate | ~7.1% p.a. (current), quarterly reviewed |
| Tenure | 15 years, extendable in 5-year blocks |
| Tax Status | EEE – Fully tax-free |
| Partial Withdrawal | From Year 7, up to 50% per rules |
| Loan Option | Available Years 3–5, up to 25% of prior balance |
| Premature Closure | For specific needs, with 1% interest penalty |
Public Provident Fund (PPF) – 411 Rs Scheme
Community Insight
“PPF offers unmatched benefits … 15-year lock-in period ensures disciplined savings … principal, interest, and maturity withdrawals are all tax-free.”
“Ensure deposits before the 5th of the month … the month counts for interest calculation.”
In Summary
The “₹411-a-day PPF plan” isn’t a separate or new scheme—it’s just a catchy way to visualize how disciplined saving of ₹411 daily can lead to a substantial corpus of approximately ₹43.6 lakh in 15 years at current interest rates. It underscores the power of consistency and long-term planning, backed by the secure, tax-advantaged framework of PPF.
Let me know if you’d like help with planning timelines, maturity schedules, or comparison with other schemes—I’d be happy to assist!
