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Maximize Your Wealth with PPF: A Comprehensive Guide

The Public Provident Fund (PPF) is a government-backed savings scheme that offers significant financial benefits, including tax-free income. With a maturity period of 15 years, it allows for substantial wealth accumulation through strategic investments. By adhering to the 15+5+5 formula, investors can potentially grow their corpus to one crore over 25 years. This article explores the investment limits, interest rates, and options available post-maturity, making it an essential read for anyone looking to secure their financial future.
By Narendra Chaudhary May 1, 2026, 11:41 IST

Understanding PPF Accounts


PPF Account: The Public Provident Fund (PPF) is a government-backed savings scheme that offers financial security and tax benefits. The maturity period for a PPF account is 15 years, which can be extended in blocks of five years. This scheme is an excellent option for building a substantial corpus over the long term while enjoying tax-free income.


Investment Limits and Interest Rates in PPF

In a PPF account, you can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh each financial year. Currently, the interest rate stands at 7.1% per annum, which helps your savings grow rapidly through compounding. Both the investment and the interest earned are tax-free, making this scheme even more appealing.


How to Accumulate a Fund of One Crore

By following the 15+5+5 formula, if you invest ₹1.5 lakh annually for 25 years, your total investment will amount to ₹37.5 lakh. At an interest rate of 7.1%, this fund can grow to one crore in 25 years, yielding ₹65.58 lakh in interest.


Options After Maturity

After maturity, you can extend your PPF account for another five years. If you continue to invest, you will keep earning interest at the same rate. Even without further contributions, your accumulated amount will still earn interest.


Tax-Free Income from PPF

With a fund of one crore, you can earn an annual interest of 7.1%, translating to an income of up to ₹7.31 lakh, which is entirely tax-free. This allows for a monthly income of approximately ₹60,000.


Understanding the 15+5+5 Formula

This formula requires you to deposit ₹1.5 lakh annually for 15 years, followed by two extensions of five years each. During this period, you will need to continue depositing ₹1.5 lakh each year.



  • Maximum annual investment: ₹150,000


  • Interest rate: 7.1% per annum (compounding)


  • Total investment over 15 years: ₹2.25 million


  • Corpus at maturity after 15 years: ₹4,068,209


  • Interest earned: ₹1,818,209



Extending PPF for 5 + 5 Years


  • Total investment after 25 years: ₹3,750,000


  • Total corpus after 25 years: ₹10.3 million


  • Interest earned: ₹6,558,015