PPF Calculation: A great PPF plan! Invest with your wife and earn ₹1.33 crore in tax-free funds! Learn the full strategy..

If you're looking for a risk-free, guaranteed return and completely tax-free investment, then PPF (Public Provident Fund) is the best and most powerful option for you. This government scheme matures in 15 years, which can be extended in blocks of 5 years. Investors can deposit a maximum of ₹1.5 lakh per year. Currently, this scheme offers a fixed interest rate of 7.1%. So, if a husband and wife invest wisely, becoming a millionaire in just 20 years is very easy. Let's explore the full math behind this excellent strategy.

How can a husband and wife become millionaires together?
PPF doesn't allow for joint accounts, but there's an easy solution. A husband and wife can open separate PPF accounts in their respective names. If both invest ₹1.5 lakh each every year, their total investment will reach approximately ₹60 lakh in 20 years. With interest, this amount could reach over ₹1.33 crore.

The Complete Process to Become a Millionaire in 20 Years

To become a millionaire, you just need to adopt a simple but consistent investment habit.
Both husband and wife will need to deposit ₹1.5 lakh each year, or ₹12,500 per month.
This plan will mature in the first 15 years, after which it will have to be extended for another 5 years.
Thus, the total investment will be ₹60 lakh in 20 years.
With compound interest of 7.1%, this amount will grow to ₹1,33,16,576.
If both deposit ₹30 lakh each, they will earn ₹36,58,288 in interest over 20 years.

This will create ₹66,58,288 in each account, totaling ₹1,33,16,576.

Triple Tax Benefit (E-E-E)
The biggest advantage of PPF is its E-E-E tax benefit—
• Tax exemption on the investment amount (Section 80C)
• No tax on interest
• And the maturity amount is also completely tax-free.

Meaning that any earnings will be 100% tax-free.

Don't Miss the Extension Deadline
After completing 15 years in your PPF account, you can extend it for another 5 years.

If you wish to continue investing, submit Form H at the bank or post office.
Be sure to submit it within one year of the maturity date.
If this is not done on time, further deposits will not be made to the account, and the interest rate may also decrease.

The most reliable plan for safe investment
PPF is a fully government-guaranteed scheme. There is no market risk or fear of capital loss.

The effect of compound interest over a long period of time makes it grow rapidly, and in 15-20 years, this scheme can make you a tax-free millionaire. (Note: This article is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investments.)

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