Good news for investors seeking safe and reliable options — if you want to become a millionaire without taking on market risks, Public Provident Fund (PPF) can be a smart and steady path. In today’s environment of falling interest rates on FDs and savings accounts, PPF continues to offer tax-free returns and guaranteed income. With the right strategy, you can easily accumulate over ₹1 crore through disciplined investing.
Why PPF Remains a Popular Choice
When it comes to safe investment options, most people think of FDs, gold, or PPF. Unlike market-linked products, PPF is a government-backed scheme, which means there is no risk of capital loss. Even during times of stock market volatility, PPF offers stable, tax-free returns.
Current Interest Rate on PPF
At present, PPF offers an annual interest rate of 7.1%, compounded yearly. Thanks to the power of compounding, your earnings grow substantially over time — interest is added to your principal, and you earn further interest on the total amount.
Investors can contribute between ₹500 and ₹1.5 lakh per year into their PPF account. Importantly, both the interest earned and the maturity amount are tax-free, making it one of the most attractive long-term saving schemes.
How You Can Become a Millionaire with PPF
If you invest ₹12,500 per month in your PPF account (₹1.5 lakh per year — the maximum allowed), and follow the 15+5+5 year strategy — that is, you extend the scheme twice by 5 years after the initial 15-year term — you can build a fund of approximately ₹1.03 crore over 25 years.
Of this, over ₹65 lakh will come purely from interest earnings — thanks to the power of compounding. The best part is: all these returns are completely tax-free.
Even Smaller Contributions Can Make You a Crorepati
Even if you can only invest ₹4,585 per month, consistent contributions to PPF can still help you accumulate ₹1 crore in about 35 years. Starting early — ideally at the beginning of your career — and staying invested until retirement can turn this modest monthly investment into a multi-million-rupee corpus.
How PPF Extensions Work
The basic tenure of a PPF account is 15 years. After that, you have two options:
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Withdraw the full amount
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Extend the account in 5-year blocks (up to two extensions allowed)
During extensions, you can either continue investing or simply allow the amount to grow. The longer you keep your money invested, the more substantial your returns will be.
Important Points to Remember
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If you skip the minimum required contribution in a year, your account may default — but it can be revived with a small late fee and minimum deposit.
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Compounding works best with regular, uninterrupted contributions over the long term.
Disclaimer: All investments should be made after your own due diligence. The publisher is not responsible for any financial outcomes.
Author Profile
- My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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