PPF: Don't underestimate PPF! A husband and wife can create a tax-free fund of ₹1.33 crore in just 20 years..

If you're looking for a risk-free investment, guaranteed returns, and tax-free income, PPF is the best option. This is a government scheme that matures in 15 years. If you wish, you can extend it in blocks of 5 years each. Investors can invest up to ₹1.5 lakh annually in this scheme. Currently, this scheme offers an interest rate of 7.1 percent. If you wish, you can easily become a millionaire in just 20 years with this scheme. However, both you and your wife will have to invest in it.

Learn how a husband and wife can become millionaires together.
PPF does not offer a joint account, but both husband and wife can open separate accounts in their own names. If both contribute ₹1.5 lakh annually, the combined contribution of ₹30 lakh each over 20 years will amount to ₹60 lakh, with interest accumulating to ₹1.33 crore.

Plan to become a millionaire in 20 years.
Invest ₹1.5 lakh annually, or ₹12,500 per month. The scheme matures in 15 years, after which extend it for 5 years. Thus, if you continue investing annually for 20 years, the total investment for both husband and wife will be ₹60 lakh. At an interest rate of 7.1%, this amount will reach ₹1.33 crore with compound interest.

Understand the calculation to become a millionaire.
Suppose a husband and wife invest ₹1.5 lakh each annually in PPF. In this way, in 20 years, both of you will have deposited a total of ₹30 lakh in your respective accounts. Calculated at an interest rate of 7.1 percent, both of you will receive ₹36,58,288 in interest. This means that both of you will receive a total of ₹66,58,288 in 20 years. 66,58,288 + 66,58,288 = ₹1,33,16,576. Thus, both husband and wife will become millionaires in 20 years.

Triple Tax Benefits
PPF investments are classified under the E-E-E (Exempt-Exempt-Exempt) category. This means that the investment is tax-free (80C exemption), the interest is tax-free, and the maturity amount is also tax-free. This means the entire return is completely tax-free.

Don't forget the extension deadline.
After 15 years, your PPF account can be extended for another five years. If you wish to continue contributing, submit Form H to your bank or post office within one year of the maturity date. If you fail to apply on time, contributions to the account will cease and interest may be reduced.

The Strongest Scheme for Safe Investment
PPF is a fully government-guaranteed scheme. There is no market risk or fear of capital loss. Over the long term, this scheme grows with compound interest every year, creating a tax-free fund of crores in 15-20 years.

Proper planning will yield significant benefits.
If you want to use PPF for retirement, children's education, or future security, start early. The sooner you start investing, the greater the compound interest you will earn.

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