What if you could create a 1 crore+ corpus without touching the stock market? No sleepless nights, no risks — just steady savings in a government-backed scheme.
🚀 The Crorepati Math
- Investment: ₹1,50,000 every year
- Tenure: 25 years (account extended after 15 years, as rules allow)
- Interest rate (current): 7.10% p.a.
- Withdrawal: None (let compounding work)
✨ Result: ≈ ₹1.03 crore corpus
(₹37.50 lakh invested + ~₹65.58 lakh tax-free interest growth)
👉 And yes — every rupee of that final amount is tax-free under existing Income Tax rules.
🔑 Why It Works
- Government-backed safety – Your money is 100% secure.
- Tax-free growth – PPF enjoys EEE status: Exempt on investment, exempt on interest, exempt on maturity.
- Power of compounding – By depositing at the start of each financial year, you maximise interest every single year.
- Discipline pays – No withdrawals, no breaks — just 25 years of steady investing.
📊 Timeline Snapshot
- Year 1: ₹1.5 lakh grows to ₹1.60 lakh
- Year 10: Corpus crosses ₹22.3 lakh
- Year 15: Touches ₹40.68 lakh
- Year 20: ₹66.58 lakh milestone
- Year 25: Crowned Crorepati — ₹1.03 crore
✅ Key Features of the PPF Scheme
- Minimum Deposit: To open the account and every financial year thereafter, you must deposit at least ₹500.
- Maximum Deposit: You can deposit up to ₹1,50,000 in a financial year.
- Eligibility: Any resident Indian (or guardian on behalf of a minor) can open a PPF account.
- Tenure & Extension: The account matures in 15 years; it can be extended further in blocks of 5 years each.
- Interest Calculation: Interest is calculated monthly (on the lowest balance between the 5th and the end of each month) and credited annually.
- Loan Facility: Loan can be availed from the 2nd financial year up to the end of the 5th financial year.
- Partial Withdrawal: Allowed once a year after completion of 5 financial years, i.e., from the 6th financial year onwards.
- Nomination: A nominee can be added at the time of account opening or later.
- Tax Benefits: Investment, interest, and maturity proceeds are fully tax-free (EEE status).
⚠️ Things to Remember
- Rate changes possible: Current rate is 7.10% p.a., reviewed every quarter. Future returns may vary.
- Discipline matters: Skip withdrawals if your goal is wealth creation.
✨ One Line to Share
“Invest ₹1.5 lakh every year in PPF, let it grow untouched, and in 25 years you’ll be a Crorepati — tax-free and risk-free.”
Also read : Interest Rate on PPF
📌 Disclaimer
This article is for informational purposes only. The calculations shown are based on the current PPF interest rate of 7.10% p.a. and existing Income Tax laws as of now. PPF interest rates are reviewed by the Government of India every quarter and are subject to change. Future returns may therefore vary. Readers are advised to consult their financial advisor or refer to official government notifications before making investment decisions.