- 7.1%Interest a yearSame as PPF
- Tax-freeInterest and maturity
- ₹500 to ₹1.5 LDeposit a year
- 15 yearsExtend by 5 years
What is the Ponmagan scheme?
Ponmagan Podhuvaippu Nidhi (பொன்மகன் பொதுவைப்பு நிதி) is the name post offices in Tamil Nadu use for a Public Provident Fund (PPF) account opened for a boy. "Podhu Vaippu Nidhi" means Public Provident Fund in Tamil. The savings scheme for girls is called Selvamagal, which is Sukanya Samriddhi.
So Ponmagan is not a separate scheme with its own rules. It is a normal PPF account in your son's name, under the Public Provident Fund Scheme, 2019. You run it until he turns 18.
- Step 1Open for your sonAt a post office, from birth to age 17.
- Step 2Deposit every year₹500 to ₹1.5 L, for 15 years.
- Step 3Interest grows tax-free7.1% a year, added every 31 March.
- Step 4Use it when he grows upTake the full amount after 15 years, or extend.
Example: Karthik, 5. His parents open a Ponmagan account and deposit ₹50,000 every year. After 15 years, at 7.1%, Karthik is about 20, just in time for college.
- Deposited
- ₹7,50,000
- Interest (tax-free)
- ₹6,06,070
- Account at maturity
- ₹13,56,070
Ponmagan scheme interest rate 2026: 7.1%
The Ponmagan interest rate is the PPF rate: 7.1% a year for October to December 2026. The government reviews it every 3 months, and the new rate applies to the whole balance.
- Interest is worked out every month on the lowest balance between the 5th and the last day of the month.
- It is added to the account once a year, on 31 March, and then earns interest itself.
- So deposit before the 5th of the month, and ideally before 5 April, to earn the most.
Some websites show 9.7% or 7.6% for Ponmagan. These are not the current rate. The rate that applies is always the PPF rate, shown on the PPF interest rate page.
How much will the Ponmagan account grow?
The amount after 15 years at 7.1%, depositing the same amount at the start of every year.
| Deposit a year | Total deposited | Interest | At maturity |
|---|---|---|---|
| ₹6,000 | ₹90,000 | ₹72,728 | ₹1,62,728 |
| ₹12,000 | ₹1,80,000 | ₹1,45,457 | ₹3,25,457 |
| ₹25,000 | ₹3,75,000 | ₹3,03,035 | ₹6,78,035 |
| ₹50,000 | ₹7,50,000 | ₹6,06,070 | ₹13,56,070 |
| ₹1,00,000 | ₹15,00,000 | ₹12,12,139 | ₹27,12,139 |
| ₹1,50,000 | ₹22,50,000 | ₹18,18,209 | ₹40,68,209 |
With one 5-year extension, Karthik's account would reach ₹22,19,429 when he is about 25. For your own numbers, use the Ponmagan scheme calculator.
Ponmagan scheme eligibility
- Yes: Any resident Indian boy below 18, from birth
- Yes: Opened by his father, mother or legal guardian
- Yes: One account per child, at any post office or authorised bank in India
- No: NRIs (a boy who later becomes an NRI can continue till maturity)
- No: A second PPF account for the same child
- No: Joint accounts
How to open a Ponmagan account: documents and steps
- Step 1Visit a post officeAny post office, or an authorised bank branch.
- Step 2Fill in the PPF formIn the boy's name, with you as guardian.
- Step 3Give the documentsBirth certificate, your Aadhaar and PAN, photos.
- Step 4Make the first depositAt least ₹500.
- Step 5Add a nomineeSo the money reaches the family easily.
- Step 6Get the passbookUpdate it with every deposit.
| Document | Why |
|---|---|
| Boy's birth certificate | Proof of his age |
| Parent's or guardian's Aadhaar and PAN | KYC of the person running the account |
| Passport-size photos of the parent and the boy | For the account form |
| PPF account opening form | Available at the post office and on the India Post website |
Deposit rules
- Amount: at least ₹500 and at most ₹1,50,000 in a financial year (April to March), in multiples of ₹50.
- How often: in one go or in parts, any time in the year, by cash, cheque or online through the post office.
- Shared limit: the ₹1,50,000 limit is for the parent's own PPF and the child's PPF together. Any amount above it earns no interest.
- Missed a year? The account becomes inactive. To revive it, pay ₹50 for each missed year plus ₹500 for each of those years.
Ponmagan scheme loan and withdrawal rules
When you can take money out, year by year, for Karthik's account (₹50,000 a year):
- Loan: up to 25% of the balance at the end of the second year before, at 1% above the PPF rate. Repay it within 3 years.
- Part withdrawal: once a year, up to 50% of the balance at the end of the fourth year before (or of the last year, if lower). You do not repay it.
- Closing early: only after 5 years, for the boy's higher education, serious illness or moving abroad. The interest is then 1% lower for the whole time.
Maturity and extension
The account matures after 15 full financial years. You can then take out the whole amount, or extend it in blocks of 5 years, as many times as you like:
- With deposits: apply in Form-4 within 1 year of maturity. You can withdraw up to 60% of the balance at the start of the extension, over the 5 years.
- Without deposits: happens on its own if you do nothing. The balance keeps earning interest, and you can withdraw any amount once a year.
When he turns 18, nominee and transfer
- Step 1At 18He gives his own KYC and the account continues in his name, with the same maturity date.
- Step 2NomineeAdd one at opening or later. If the holder dies, the nominee or heirs get the balance.
- Step 3Moving cityTransfer the account to another post office or bank. Nothing else changes.
Ponmagan scheme tax benefits
- ₹1.5 LDeduction on depositsOld regime, Section 123 (earlier 80C)
- Tax-freeYearly interest
- Tax-freeMaturity amount
PPF is fully tax-free: no tax on the interest or the final amount, and a deduction on deposits in the old regime. The deduction is claimed by the parent who deposits, within the ₹1,50,000 yearly limit for all their Section 123 investments.
Ponmagan: strengths and limits
- Yes: Backed by the Government of India
- Yes: Fully tax-free
- Yes: Start with just ₹500 a year
- Yes: Loans and part withdrawals after a few years
- No: Money is locked for 15 years
- No: Rate can change every 3 months
- No: Limit of ₹1.5 L a year, shared with the parent's PPF
Ponmagan vs Sukanya Samriddhi (Selvamagal)
| Ponmagan (PPF) | Sukanya Samriddhi | |
|---|---|---|
| For | Boys below 18 (PPF is for anyone) | Girls up to age 10 |
| Interest rate | 7.1% | 8.2% |
| Deposit | ₹500 to ₹1.5 L a year | ₹250 to ₹1.5 L a year |
| Pay for | 15 years | 15 years |
| Matures after | 15 years (can extend) | 21 years |
| Tax | Fully tax-free | Fully tax-free |
For a girl, see the Sukanya Samriddhi calculator.
Frequently asked questions
What is the Ponmagan scheme?
Ponmagan Podhuvaippu Nidhi is the name used by post offices in Tamil Nadu for a PPF (Public Provident Fund) account opened for a boy. 'Podhu Vaippu Nidhi' means Public Provident Fund in Tamil. It is a normal PPF account in the boy's name, run by a parent until he is 18.
What is the Ponmagan scheme interest rate in 2026?
7.1% a year for October to December 2026, the same as PPF. The government reviews it every 3 months, and the new rate applies to the whole balance. Rates like 9.7% or 7.6% shown on some websites are not the current rate.
Who can open a Ponmagan account?
A parent or legal guardian can open it for any resident Indian boy below 18, even a newborn. Only one PPF account is allowed per child, so both parents cannot open separate accounts for the same boy.
What documents are needed for the Ponmagan scheme?
The boy's birth certificate, the parent's Aadhaar and PAN, passport-size photos of the parent and the boy, and the PPF account opening form. Carry the originals to the post office for checking.
What is the minimum and maximum deposit in Ponmagan?
At least ₹500 and at most ₹1,50,000 in a financial year, in multiples of ₹50. The ₹1,50,000 limit is for the parent's own PPF and the child's PPF together.
What if I miss a year's deposit?
The account becomes inactive. To revive it, pay ₹50 for each missed year plus the minimum ₹500 for each of those years. Interest keeps being added to the balance in the meantime.
Can I take money out of a Ponmagan account?
Yes, within limits. A loan is possible from the 3rd to the 6th financial year, and part withdrawals from the 7th year, once a year. Closing it fully before 15 years is allowed only after 5 years, for reasons like the boy's higher education or serious illness.
Is the Ponmagan scheme only for Tamil Nadu?
The name is used in Tamil Nadu, but a PPF account for a boy can be opened at any post office or authorised bank in India. The rules and the interest rate are the same everywhere.
Is Ponmagan scheme money tax-free?
Yes. The interest and the final amount are fully tax-free. In the old tax regime, the parent can claim the deposit under Section 123 of the Income-tax Act, 2025 (earlier Section 80C), within ₹1,50,000 a year.
What happens when the boy turns 18?
He becomes the account holder. He submits his own KYC documents at the post office, and the account continues in his name with the same rules and maturity date.
What happens if the account holder dies?
The account is closed and the balance, with interest, is paid to the nominee or legal heirs. A PPF account cannot be continued in another person's name.