Parents across India are searching for reliable and safe investment plans for their children, and the SBI Public Provident Fund (PPF) has emerged as one of the most trusted options. A viral claim suggests that depositing ₹90,000 every year in your daughter’s name can help you build a massive ₹24.40 lakh fund. But how true is this number, and what does it really take to achieve such a return? Here is a complete, easy-to-understand breakdown.
SBI PPF: A Secure, Government-Backed Scheme
The PPF account is backed by the Government of India and is considered among the safest long-term savings tools. Investors get guaranteed interest and a tax-free maturity amount. An SBI PPF account can be opened for a minor child, with the parent or guardian managing the deposits. This makes it one of the best ways to build a future-ready fund for your daughter without taking any market risk.
How ₹90,000 Can Grow Into ₹24.40 Lakh
The viral claim is based on the long-term compounding power of PPF. When you deposit ₹90,000 every year for the full 15-year tenure, the amount grows steadily at the current PPF interest rate. Over time, the principal plus accumulated interest can reach the range of ₹24 lakh or more depending on the prevailing interest rate. The key is consistency. The longer you allow the investment to compound, the larger the maturity amount becomes.
Why PPF Works So Well for Children’s Planning
PPF offers risk-free growth, tax-free returns and guaranteed safety. Parents who invest in PPF for their children often choose it because it aligns perfectly with long-term goals like education, marriage and financial security. When the account completes 15 years, it can also be extended in blocks of five years, creating an even bigger financial cushion for your daughter. The disciplined annual deposit builds both a habit of saving and a strong financial base for her future.
Understanding the Real Numbers
While the ₹24.40 lakh figure is achievable under favourable interest conditions, parents should understand that PPF interest rates change every quarter. If the rate stays around the current level, the final corpus will be very close to the projected amount. If the interest rises in the future, the maturity value can increase further. If it drops, the final value may reduce slightly. However, PPF still remains one of the best long-term wealth-building schemes for children.
Conclusion: The SBI PPF scheme is a reliable and powerful savings tool that can help parents build a substantial fund for their daughter. Depositing ₹90,000 every year can indeed create a long-term corpus close to ₹24.40 lakh, thanks to guaranteed government backing and the magic of compounding. For families seeking stable and risk-free growth, PPF remains one of the smartest investment options available today.
Disclaimer: Maturity values depend on interest rate changes, deposit consistency and PPF rules. Always check the latest government notifications before investing.
