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Ponmagan Scheme in Post Office: Exploring Interest Rate and Eligibility in 2023


The Ponmagan Podhuvaippu Nidhi Scheme, introduced by the Government of Tamil Nadu in 2015, is a significant social welfare initiative. The name “Ponmagan” translates to “Golden Child,” the scheme aims to provide financial assistance to boy students facing economic and financial constraints, ensuring they can pursue their education without barriers.

Purpose of the Ponmagan Scheme

The primary objective of the Ponmagan Podhuvaippu Nidhi Scheme is to promote inclusive education, ensuring that every student has access to education regardless of their financial background. It encourages parents or guardians from economically weaker Tamil Nadu sections to save money for their boys’ education. The Department of Post administers this noble initiative.

Opening a Ponmagan Podhuvaippu Nidhi Scheme (PPNS) Account

To open a Ponmagan Podhuvaippu Nidhi Scheme (PPNS) account, a minimum deposit of Rs.100 is required, and the parents or guardians must contribute a minimum of Rs.500 annually. The maximum annual amount that can be deposited under the PPNS account is Rs.1.5 lakh. The account can be transferred across post offices in India and opened through cash or cheque payment. Additionally, the account allows for a nomination facility.

Highlights Of the Ponmagan Scheme

  Scheme name   Ponmagan Podhuvaippu Nidhi Account
  Year   2023
  State   Tamil Nadu
  Scheme type   Saving scheme
  Beneficiary   All boys of the Tamil Nadu State
  Scheme Start on   15 September 2015
  Opening amount   Rs 100 only
  Age for opening an account   Below 10 years & above 10 years

Interest Rate and Eligibility Criteria 2023

The interest rate for the Ponmagan Scheme is decided periodically by the Tamil Nadu government, and currently, it stands at 9.7% per annum, with annual compounding.

  Interest rate   9.70%
  Minimum amount   RS 500
  Maximum amount   RS 5 lakh


To be eligible for a PPNS account, the following criteria must be met:

  • The applicant should be a male child and a resident of Tamil Nadu.
  • The child must study in a government or government-recognized school or college in Tamil Nadu.
  • The applicant should belong to the Economically Weaker Section (EWS) category.
  • The child should not be receiving any other financial assistance for education from the government.
  • Only one male child per family can open a PPNS account.
  • The account should be in the name of the boy child if the child is above 10 years, and parents or guardians can open the account when the boy child is below 10 years.

Documents Required for the Ponmagan Scheme

The documents necessary to open a PPNS account are as follows:

  • Ponmagan Scheme application form
  • Passport-size photo of the boy child
  • Income certificate of parents or guardians
  • School certificate of the current academic year of the boy child
  • Bank account details of the boy child
  • Residence proof (Voter ID, ration card, or Aadhaar card)

How to Apply for Ponmagan Podhuvaippu Nidhi Scheme (PPNS) 2023?

Opening a Ponmagan Scheme account involves the following steps:

  1. Visit the nearest post office branch and obtain the Ponmagan Podhuvaippu Nidhi Scheme application form.
  2. Fill in the form and attach all the required documents.
  3. Submit the filled application form, necessary documents, and the deposit amount to the post office officials.
  4. The officials will verify the application and documents and open the PPNS account.

Maturity Period and Benefits

The maturity period for the Ponmagan Podhuvaippu Nidhi Scheme is 15 years. It can be extended by five years within a year of maturity, but premature closure is not allowed. However, partial withdrawals are permitted from the seventh financial year of opening the PPNS account.

The Ponmagan Scheme offers several benefits:

  • Accessibility: The scheme is easily accessible through designated Tamil Nadu and Puducherry post offices.
  • Affordability: With a minimum investment or deposit amount of Rs.100, it is affordable.
  • Fixed Interest Rate: The scheme provides a fixed interest rate, typically higher than other small savings schemes.
  • Tax Benefits: Investors can claim tax benefits under Section 80C of the Income Tax Act for their investments in PPNS accounts.
  • Government Support: Being backed by the government, it offers a safe investment option for economically weaker sections.
  • Assured Payment: The fixed interest rate ensures an assured payment upon maturity, useful for funding the boy child’s educational expenses in the future.

Tax Exemptions

The Ponmagan Podhuvaippu Nidhi Scheme provides tax exemptions for investments up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. Additionally, the interest paid on the PPNS account is also tax-free.


The Ponmagan Scheme offered by the Indian Post Office presents a compelling investment opportunity for individuals seeking safety, stability, and reasonable returns. Its low-risk profile, periodic interest payouts, and tax benefits make it an attractive investor choice.

The Ponmagan Scheme has successfully empowered thousands of boy students in Tamil Nadu, enabling them to pursue their education without financial constraints.


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