Have you ever imagined becoming a crorepati (millionaire in rupees) just by saving money safely in a government-backed scheme? Surprisingly, it's not a dream — it's possible with the Public Provident Fund (PPF). This lesser-known investment strategy using the “15+5+5 formula” can turn your disciplined savings into ₹1 crore or more.

Let’s dive into how this strategy works — and why it's a game-changer for long-term investors and those planning for a secure retirement.

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme introduced to promote financial discipline and future planning among citizens. What makes it special?

• Risk-free investment backed by the Government of India.

• Attractive interest rates, currently around 7.1% (subject to periodic revision).

• Tax benefits under Section 80C of the Income Tax Act.

• Completely tax-free returns, including the interest earned.

While a PPF account matures in 15 years, what many investors don’t realize is that it can be extended in blocks of 5 years, twice or even more.

After the initial 15-year maturity period, you can choose from two extension options:

The second option is the real wealth builder when combined with patience and smart planning.

Let’s break down the math using the current PPF contribution limit of ₹1.5 lakh per year (approx. ₹411 per day) and an interest rate of 7.1%:

• 15 years of investment:
  You would have invested ₹22.5 lakh.
  With compounded interest, your total balance becomes approximately ₹40.68 lakh.

• Extend for another 5 years (first extension):
  Your total investment increases to ₹30 lakh.
  The balance grows to around ₹70 lakh.

• Extend for another 5 years (second extension):
  Your total contribution reaches ₹37.5 lakh.
  The final balance becomes approximately ₹1.02 crore after 25 years!

That’s how the 15+5+5 year strategy helps you achieve a 7-figure corpus — with no risk.

Once your PPF corpus crosses ₹1 crore, you can choose not to contribute any further but keep the account active for another 5 years. Your savings will continue to earn 7.1% interest per annum, amounting to:

• ₹1 crore × 7.1% = ₹7.1 lakh annually

• That’s around ₹60,000 per month in passive income — tax-free!

This makes PPF not just a savings tool but a potential retirement income generator.

• Discipline is everything: You need to consistently invest ₹1.5 lakh each year for 25 years.

• Plan ahead: Don’t withdraw prematurely. Let compounding work its magic.

• Nominate a beneficiary: Ensure your loved ones can access the corpus if needed.

• Stay informed: Interest rates may change, so keep an eye on updates from the Ministry of Finance.

PPF is more than just a traditional savings scheme — it’s a wealth-building powerhouse for those with patience and discipline. By following the 15+5+5 strategy, you can turn modest annual savings into a ₹1 crore corpus without taking any market risks.

If you're looking for a secure, tax-efficient way to build long-term wealth or ensure a comfortable retirement, PPF deserves a place in your financial plan.