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Have you ever imagined becoming a crorepati (millionaire in rupees) just by saving money safely in a government-backed scheme? Surprisingly, it's not a dream — it's possible with the Public Provident Fund (PPF). This lesser-known investment strategy using the “15+5+5 formula” can turn your disciplined savings into ₹1 crore or more.

Let’s dive into how this strategy works — and why it's a game-changer for long-term investors and those planning for a secure retirement.

What is PPF and Why is It Special?

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme introduced to promote financial discipline and future planning among citizens. What makes it special?

• Risk-free investment backed by the Government of India.

• Attractive interest rates, currently around 7.1% (subject to periodic revision).

• Tax benefits under Section 80C of the Income Tax Act.

• Completely tax-free returns, including the interest earned.

While a PPF account matures in 15 years, what many investors don’t realize is that it can be extended in blocks of 5 years, twice or even more.

Two Ways to Extend Your PPF Account

After the initial 15-year maturity period, you can choose from two extension options:

1. Without further contributions: Just let your existing balance sit and earn interest.

2. With continued contributions: Keep depositing annually and earn interest on both old and new deposits.

The second option is the real wealth builder when combined with patience and smart planning.

The Power of 15 + 5 + 5 = 25 Years

Let’s break down the math using the current PPF contribution limit of ₹1.5 lakh per year (approx. ₹411 per day) and an interest rate of 7.1%:

• 15 years of investment:
  You would have invested ₹22.5 lakh.
  With compounded interest, your total balance becomes approximately ₹40.68 lakh.

• Extend for another 5 years (first extension):
  Your total investment increases to ₹30 lakh.
  The balance grows to around ₹70 lakh.

• Extend for another 5 years (second extension):
  Your total contribution reaches ₹37.5 lakh.
  The final balance becomes approximately ₹1.02 crore after 25 years!

That’s how the 15+5+5 year strategy helps you achieve a 7-figure corpus — with no risk.

Want Regular Income After That? Here’s How!

Once your PPF corpus crosses ₹1 crore, you can choose not to contribute any further but keep the account active for another 5 years. Your savings will continue to earn 7.1% interest per annum, amounting to:

• ₹1 crore × 7.1% = ₹7.1 lakh annually

• That’s around ₹60,000 per month in passive income — tax-free!

This makes PPF not just a savings tool but a potential retirement income generator.

Key Points to Keep in Mind

• Discipline is everything: You need to consistently invest ₹1.5 lakh each year for 25 years.

• Plan ahead: Don’t withdraw prematurely. Let compounding work its magic.

• Nominate a beneficiary: Ensure your loved ones can access the corpus if needed.

• Stay informed: Interest rates may change, so keep an eye on updates from the Ministry of Finance.

Final Thoughts

PPF is more than just a traditional savings scheme — it’s a wealth-building powerhouse for those with patience and discipline. By following the 15+5+5 strategy, you can turn modest annual savings into a ₹1 crore corpus without taking any market risks.

If you're looking for a secure, tax-efficient way to build long-term wealth or ensure a comfortable retirement, PPF deserves a place in your financial plan.