Imagine becoming a crorepati just by saving money in a safe, government-backed scheme. Sounds impossible? It isn’t. With the Public Provident Fund (PPF) and a smart savings approach called the 15+5+5 formula, your yearly savings of ₹1.5 lakh can grow into ₹1 crore — without taking any risk.
Let’s see how this plan works and why it’s a simple, steady way to build long-term wealth.
What Is PPF and Why Do People Trust It?
The Public Provident Fund (PPF) is a savings scheme launched by the Government of India to help people build wealth safely over time. It’s one of the most reliable investment options for those who prefer security over market risk.
Here’s what makes PPF special:
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It’s completely risk-free because it’s backed by the government.
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Offers an attractive interest rate, currently around 7.1% per year.
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You can claim tax benefits under Section 80C of the Income Tax Act.
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The interest and maturity amount are fully tax-free.
A PPF account runs for 15 years, but you can extend it in blocks of 5 years — and that’s the real secret behind the 15+5+5 formula.
How You Can Extend Your PPF Account
After 15 years, you get two choices:
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Without adding new money: Just let your balance grow with interest.
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With continued deposits: Keep investing every year to earn interest on both old and new savings.
If your goal is to create big wealth, the second option — continuing deposits — is the smarter path.
The Power of the 15+5+5 Formula
This formula is simple:
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Invest for 15 years,
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Extend for 5 years,
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Extend again for another 5 years.
Here’s how your money can grow if you invest ₹1.5 lakh every year at an average interest rate of 7.1%:
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After 15 years: You invest ₹22.5 lakh and get around ₹40.68 lakh.
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After 20 years (first extension): You invest ₹30 lakh and get around ₹70 lakh.
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After 25 years (second extension): You invest ₹37.5 lakh and end up with ₹1.02 crore.
That’s how consistent savings, patience, and compounding work together to create real wealth.
Earn Monthly Income After Reaching ₹1 Crore
Once your PPF balance touches ₹1 crore, you can stop investing and still let the money grow. At 7.1% interest, ₹1 crore will earn about ₹7.1 lakh per year — or roughly ₹60,000 per month.
And the best part? It’s completely tax-free. This makes PPF a great option for retirement income or long-term financial security.
Tips to Get the Best Out of Your PPF
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Invest regularly: Deposit ₹1.5 lakh every year without fail.
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Avoid early withdrawals: Let your money stay invested for the full period.
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Add a nominee: So your family can access the funds easily.
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Check updates: The government revises interest rates every quarter, so stay informed.
Final Thoughts
PPF isn’t just a savings scheme — it’s a powerful tool for building long-term, tax-free wealth. The 15+5+5 strategy shows how small, steady contributions can turn into ₹1 crore with time and discipline.
If you’re looking for a safe, tax-efficient, and guaranteed way to grow your money for the future, the Public Provident Fund is one of the best options you can choose.
