PPF Calculation: In today’s volatile stock market and rising inflation, everyone is looking for a safe, reliable investment option. The question is whether one can become a millionaire without risk, taxes, and stress. The answer is the Public Provident Fund (PPF). This is why, even decades later, this scheme remains one of India’s most reliable retirement plans.
Learn about the PPF Scheme
PPF is a long-term savings scheme backed by the Central Government, specifically designed for middle- and lower-income investors. The scheme’s biggest strength is its government guarantee and tax-free returns. It is fully tax-exempt at all three levels, from investment to interest and maturity.
Read: PM Kisan Yojana – Link Your Name Easily in PM Kisan Scheme, Know the Process
Read: Samsung Galaxy F06 Price Drops By 28% Off After Galaxy A07 Launched, Flipkart Deal!
The Game of Monthly Deposits
If someone invests Rs. 12,500 every month, or Rs. 1.5 lakh annually, in PPF and continues this investment disciplinedly over a long period, the effect of compounding is astounding. Suppose an investor opens a PPF account at the age of 25 and invests for 35 years, including the original term of 15 years and subsequent extensions.
How Much Return Does PPF Give in 15 Years?
The original term of PPF is 15 years. If the maximum investment is made every year within the stipulated time frame, the total deposit at the end of 15 years would exceed Rs. 40 lakh. Approximately half of this amount is invested, and the remaining amount is earned solely from interest. This is where the real magic of compounding begins.
Why Extensions Are Important for Investors
Most investors discontinue PPF after 15 years, but the real benefits are realised after that. PPF offers the option of unlimited 5-year extensions. This extension can turn small savings into crores over the long term. The longer the timeframe, the greater the benefits.
Read: Pariksha Pe Charcha 2026 Live – PM Modi to Interact with Students Live – Active Link Here
How to make crores by age 60
If an investor continues with PPF until age 60, the total investment is approximately ₹52.5 lakh. The interest earned on this can exceed ₹1.74 crore. This means the total fund is approximately ₹2.26 crore. Surprisingly, this entire amount is tax-free.
Double the benefits if both husband and wife invest
If a husband and wife open separate PPF accounts and invest for the same period, the total tax-free fund at retirement can exceed ₹4.5 crore. This strategy significantly strengthens the family’s financial security.
Who is PPF most beneficial for?
PPF is ideal for those who seek secure returns, want to save taxes, and are serious about retirement. Especially investing between the ages of 25 and 30 lays a strong foundation for financial independence in the future.
Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
Related Stories
Business
Business
Education
Business
Gadgets
Business
Education
Business
Business
Education