The Indian Post Office offers many savings schemes that are safe and offer good returns. One such scheme is very popular because it helps people build a big amount by saving just ₹50 per day. This plan is ideal for people who want to save small amounts daily and get a big return in the future. Let’s understand how saving just ₹50 daily can give you around ₹35 lakh return over time.
Overview Table
| Feature | Details |
| Scheme Name | Post Office Recurring Deposit (PORD) / Other Long-Term Options |
| Daily Saving Amount | ₹50 |
| Monthly Contribution | ₹1,500 (₹50 x 30 days) |
| Maturity Amount | Up to ₹35,00,000 |
| Tenure | 15 to 20 years (approx.) |
| Interest Rate (Approx.) | 7% to 8.5% (compounded) |
| Investment Type | Small savings with compound interest |
| Risk Level | Very Low (Government-backed) |
How Does It Work?
The scheme works by saving a fixed amount every day. Suppose you save ₹50 per day. That adds up to ₹1,500 every month. You can deposit this money in a Post Office Recurring Deposit (PORD) or other long-term Post Office schemes like Public Provident Fund (PPF) or Time Deposit (TD).
If you continue saving ₹1,500 every month for 20 years, and the interest is compounded annually, you can get returns up to ₹35 lakh, depending on the interest rate.
Design of the Scheme
The Post Office saving schemes are designed for:
- Small daily savings
- Guaranteed returns
- No market risk
- Long-term wealth creation
These schemes are especially good for people with regular income or those who want to save for their children’s future, retirement, or house purchase.
Best Post Office Schemes for ₹50 Daily Saving
1. Public Provident Fund (PPF)
- Tenure: 15 years (extendable)
- Interest Rate: Around 7.1% (as per 2025)
- Tax Benefit: Yes (under Section 80C)
- Return: If you save ₹1,500 per month, in 15 years you can get over ₹5 to ₹6 lakh. If extended to 30-35 years with reinvestment, it can become ₹35 lakh.
2. Recurring Deposit (RD)
- Tenure: 5 years (can be reinvested)
- Interest Rate: Around 6.7% to 7%
- Flexibility: You can deposit monthly
- Return: On continuous reinvestment and increasing amount, it can help you grow your savings greatly over 15-20 years.
3. Time Deposit (TD)
- Tenure: 1, 2, 3, or 5 years (can renew)
- Interest Rate: 6.9% to 7.5%
- Use: You can move your RD/PPF maturity into TD to grow it more
Interest Calculation
Let’s take an example:
- Monthly saving = ₹1,500
- Interest rate = 7.5%
- Duration = 20 years
Using compound interest formula, your total investment will be ₹3.6 lakh (₹1,500 x 12 x 20). The maturity amount can go up to ₹10-11 lakh in PPF. If you keep reinvesting this amount for the next 10-15 years, using compound growth, it can reach around ₹30 to ₹35 lakh.
Benefits of This Scheme
- Safe & Secure: Backed by the Government of India.
- Low Investment: Only ₹50 per day is needed.
- High Return Over Time: ₹35 lakh possible with discipline and long-term saving.
- Tax Benefits: PPF offers tax-free interest and tax saving under Section 80C.
- Easy Access: Available at every Post Office across India.
- No Risk: Not linked to market ups and downs.
Important Points to Remember
- You need to deposit monthly (₹1,500), not daily.
- The longer you save, the higher the return.
- Do not withdraw in between to get full benefit.
- Keep renewing or reinvesting your matured funds.
- Always keep your passbook and documents updated.
Who Should Invest?
- Students planning for higher education funds
- Parents saving for children’s marriage or future
- Working people planning for retirement
- Low-income families looking for long-term savings
Final Words
Saving ₹50 every day may seem small, but with discipline and patience, it can help you build a big amount of ₹35 lakh over time. Post Office schemes are a great option for this goal as they are safe, government-backed, and offer good returns. Start your savings journey today, and let time and compound interest work for you!