PPF: Now become a millionaire with PPF! The magic of 15+5+5 is amazing, the balance will become ₹1 crore, but how..

Do you know that there is a government scheme that not only keeps your money safe but can also make you a millionaire, which can help you get a good amount every month after retirement? Yes, the government scheme we are talking about is Public Provident Fund (PPF).

What is PPF, and why is it special?

Public Provident Fund is a long-term government savings scheme. Its main objective is to inculcate the habit of saving among people and to create a safe and good fund for the future. Usually, a PPF account matures in 15 years, but today we will understand its 5+5 extension formula.

Extension also happens in two ways.
The first way is that you can stop depositing more money in the account after 15 years, and even then, you will keep getting interest on the deposited money. The second option is that you can keep depositing money into the account every year as before and keep earning interest on it.

15 + 5 + 5 = 25 years of magic

So now think, if you invest the maximum allowed amount in PPF every year (currently ₹1.5 lakh annually, i.e. approximately ₹411 daily) without stopping and keep getting the current interest rate of 7.1% (it keeps changing), then how many benefits will you get in it.

15 years calculation
If we understand from the calculation of 15 years, then your total deposit fund will be ₹22.50 lakh. In this, you can get approximately ₹40.68 lakh (including interest). So now if you extend this account with investment twice for 5-5 years (total 10 more years), then in the next 10 years, your total deposit (15+10 years) will become ₹37.50 lakh.

How to make a strong fund

If you invest in a PPF account for 15 + 5 + 5, i.e., 25 years, then you will get around ₹1.02 crore. Now you can extend it for 5 years again without investing. That means now you will get 7.1% annual interest on your ₹1.02 crore, which is approximately ₹7.31 lakh annually.

Approximately ₹60,000 per month

Let us tell you that you will get 7.1% annual interest on its closing balance of ₹1 crore. In this case, it will be ₹7,31,300 in a year, and if you divide it in 12 months as per convenience, then it will become ₹60,000 per month.

Points to note

Public Provident Fund is not just a savings scheme, it is the result of your disciplined investment and patience. By extending it for 10 years after the maturity of 15 years, you create a safe future for yourself in terms of money.

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