Crorepati calculator: Turn Rs 6,000 in PPF account into Rs 1 crore; here is how

Crorepati calculator: In the coronavirus-hit stock markets, where returns have been nosediving and then recovering to an extent, the volatility is too high for the common investors to tolerate. They want to make big profits and not risk losing their money. This has made them look at other safe investment havens very favourably. While gold is soaring to record highs, there are other safe haven investments that are even more secure. These not only keep your money safe, they give you a big profit on top of that too! 

These are government-backed small savings scheme where investors can expect an assured return after a particular time. Public Provident Fund (PPF) is one such small savings scheme. Those who want to retire rich and don't want to jeopardize their retirement fund, PPF account has always been attractive for investors. In PPF, an investor, after investing for the long-term, not only creates a huge retirement fund, but in the period of investment enjoys income tax exemption under Section 80C of the Income Tax Act as well. So, apart from generating profit, PPF also allows investors to save the money that the taxman would have taken away! Double gains for investors here!

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As per the latest announcement by the Government of India (GoI), the PPF rate of interest is 7.1 per cent. By using a PPF calculator, an investor can find out what he can earn from his investment and how long it will take. Yes, you can accumulate more than Rs 1 crore from this single investment tool. Assuming Rs 6,000 per month investment in PPF account from the age of 25, a salaried person can expect to invest for around 35 years till his or her retirement. Assuming 7.1 per cent average PPF interest rate for the entire 35 years, the PPF calculator suggests that one will be able to accumulate Rs 1,08,94,971 that can become a huge financial support for the person after retirement.

Source; Scripbox PPF calculator

But, then you would want to know how come one can invest in PPF for 35 yeas when maturity period is 15 years only? Well, those thinking on these lines need to know that they can extend PPF account for a period of 5 years after the maturity of PPF account. The PPF account holder needs to submit Form-H within one year of the PPF account maturity if he or she wants to continue investment in the PPF account and get PPF interest rate along with compounding benefits. There is no bar on how many times investors can extend PPF account after maturity. So, they can go on submitting Form-H after extending the PPF account for first five years for as many times as he or she wants. This PPF rule will enable the PP account holder to continue investment in PPF account for 35 years.

Therefore, following the above-mentioned Form-H trick in one's PPF account, one can expect to become a crorepati by investing just Rs 6,000 per month in the PPF.