Post Office PPF Scheme: The Public Provident Fund (PPF) offered by India Post has always been trusted as one of the safest long-term investment options. Backed by the Government of India, this scheme is ideal for people who want guaranteed returns, tax benefits, and a stable plan for long-term wealth creation. Many financial experts also recommend PPF because it helps ordinary investors build a retirement fund worth crores with disciplined investing.
Why PPF Is One of the Safest Investment Choices
PPF is popular for three main reasons—government security, stable interest, and tax savings. Currently, the scheme offers 7.1% annual interest, and the amount you invest qualifies for a tax deduction of up to ₹1.5 lakh under Section 80C. Anyone who is an Indian citizen can open a PPF account, making it one of the most accessible savings options in the country.
Understanding the PPF 15+5+5 Strategy
The standard maturity period of a PPF account is 15 years. However, what makes the scheme more powerful is the option to extend it in blocks of 5 years. This creates the well-known 15+5+5 formula, which allows investors to keep their money invested for as long as 25 years.
During this extended period, compound interest works at its best, helping your savings grow exponentially.
How ₹1 Crore Can Be Built Through PPF
If someone invests ₹1.5 lakh every year, their total investment in the first 15 years becomes ₹22.5 lakh. With the addition of interest, the amount grows to around ₹40 lakh.
By keeping this amount untouched for the next five years, it can rise to approximately ₹57 lakh. After another five-year extension, the total value reaches nearly ₹80 lakh.
If the investor continues depositing ₹1.5 lakh every year for all 25 years, the final amount can easily touch ₹1.03 crore, making it a highly reliable wealth-building strategy.
What After 25 Years ? Monthly Income for Life
Even after completing 25 years, the PPF account can be extended further. A fund of ₹1.03 crore can generate around ₹7.3 lakh annually at 7.1% interest, which is equal to ₹61,000 per month.
This makes PPF a strong financial support system for retirement, offering both safety and steady income.
