Turn Your Investment into ₹1 Crore with Post Office Scheme(See How)

For many, the dream of creating substantial wealth from modest monthly investments is a powerful motivator.

If you’re an employed investor with aspirations of amassing a corpus of over Rs 1 crore, the Public Provident Fund (PPF) offered by the post office might be the answer to your financial ambitions.

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Not only does this scheme provide a secure avenue for savings, but the magic of compound interest can set you on the path to becoming a millionaire.

Currently, the PPF offers a 7.1 percent annual interest rate.

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Key Points:

Minimum Investment: You can open a PPF account with just Rs 500.

Annual Limit: The maximum annual deposit allowed in a PPF account is Rs 1.5 lakh.

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Maturity Period: A PPF account matures in 15 years, but it can be extended for an additional 5 years, allowing a total investment duration of 25 years.

Withdrawals: You have the option to withdraw your funds after 15, 20, or 25 years.

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How to Reach the 1 Crore Milestone:

To become a PPF millionaire, you’ll need to commit to a 25-year investment.

By consistently depositing a total of Rs 37.50 lakh with an annual interest rate of 7.1 percent, your investment will grow to Rs 1.02 crore upon maturity.


Return calculator

If you invest Rs 12,500 per month means Rs 417 per day for 15 years i.e. till maturity your total investment will become Rs 22.50 lakhs.

Also as per the norms, you will get the benefit of compounding with an annual interest of 7.1 percent.


Following that, you will get Rs 18.18 lakh as interest. Combining both, you have a total of Rs 40.68 lakh.

If you choose to extend your investment for 5-5 years twice after the pre-defined, you’ll get Rs 1.03 crores.

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In this case, your investment amount will reach Rs 37.50 lakh. Your interest becomes Rs 65.58 lakh.

The total fund you are getting to be in hand will be Rs 1.03 crores.

Withdrawal Rules

You cannot withdraw your funds for the first 5 years after opening a PPF account. After the completion of 5 years, withdrawals are allowed by filling Form 2.

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Early withdrawals before 15 years will incur a 1 percent penalty. Any individual can open a PPF account in their name at a post office or bank, and it can also be opened on behalf of a minor.

Where to Open a PPF Account?

A PPF account can be opened at any bank or post office. You can open a PPF account in your name for your child’s benefit.

However, it cannot be opened in the name of a Hindu Undivided Family (HUF).


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