PPF calculator: If you don’t like risk, invest money in PPF, you will own Rs 2,26,97,857 by the time of retirement

Becoming a millionaire is not rocket science. For this, you just have to understand the strategy of saving and investing and bring a little patience in yourself because any such work takes a long time.

Now the question comes where to invest. If you can take a little risk, then a scheme like Mutual Fund SIP can be helpful for you. But if you do not like risk, then you can take the option of PPF i.e. Public Provident Fund. A maximum of Rs 1.5 lakh can be invested annually in PPF. Currently, 7.1 percent interest is being given on this scheme. Know here how you can add a fund of more than 2 crores through this scheme.

This way you will get Rs 2,26,97,857 till the age of 60

PPF scheme matures in 15 years, but you have to get it extended. You can get PPF extended any number of times in blocks of 5 years each. To add Rs 2,26,97,857, you will have to invest Rs 1.5 lakh in PPF every year i.e. deposit Rs 12,500 every month. After this, you will have to get it extended 4 times in blocks of 5 years each. In this way, the duration of your PPF account will become 35 years in total.

If you do this, you will invest a total of Rs 52,50,000 in 35 years, but you will get Rs 1,74,47,857 as interest on it. In this case, you will get Rs 2,26,97,857 on maturity. If you start this investment at the age of 25 and continue it for 35 years, then at the age of 60 you will have Rs 2,26,97,857 as retirement fund.

Account Extension with Contribution

Keep in mind that every time you want to extend PPF, you have to do it along with contribution. For this, you will have to submit an application to the bank or post office where you have an account. You will have to submit this application before the completion of 1 year from the date of maturity and you will have to fill a form for extension. The form will be submitted in the same post office/bank branch where the PPF account has been opened. If you are not able to submit this form on time, then you will not be able to contribute to the account. So take special care of this.

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