PPF Tips: Create a fund of Rs 1.5 crore from PPF, just use this formula of Triple 5..

The central government has kept the interest rate of Public Provident Fund (PPF) stable at 7.1% per annum for the quarter of July-September 2025. This scheme is very popular, especially among the salaried class and those looking for a safe investment. The maturity of PPF is 15 years, but it also has the facility of taking extensions for 5 5 years repeatedly, so that it can be kept running throughout the job.

The benefit of investing for 30 years of a job
If a person starts a PPF account at the age of 28 and continues investing till the age of 58, i.e., for 30 years, then he can extend this scheme thrice for 5-5 years. If Rs 1.5 lakh is invested every year during this period, then the total investment is Rs 45 lakh. At an annual interest rate of 7.1%, the fund grows to around Rs 1.54 crore after 30 years, in which the benefit from interest is more than Rs 1.09 crore.

Benefits associated with the extension
The biggest advantage of extending PPF is that you can create a strong fund till your retirement without any additional risk. Also, this entire amount and the interest received from it are free. Even if you stop investing after retirement, you can still extend the scheme for 5 years. During this time, interest will continue to be received on the closing balance, and you can withdraw the entire amount of interest once a year.

For example, at an annual interest rate of 7.1% on a fund of Rs 1.50 crore, the annual interest is Rs 10.65 lakh. If you divide it over 12 months, it becomes a regular tax-free income of about Rs 88,750 per month. PPF is not only a long-term safe investment plan, but it can also become a strong financial backup for your retirement. If you start investing at the right time and take advantage of the extension, this scheme can make you a millionaire without any risk. This is the reason why financial experts also recommend including it in the portfolio of every employed person.

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