₹1.5 Lakh/Year in PPF: How Long to ₹66 Lakh?

Investing ₹1.5 lakh per year in PPF can grow to ₹66 lakh over time — but how many years it takes depends on when you start and how compounding works. Here's the honest math.

Here's what happened: PPF currently earns 7.1% annual interest, compounded yearly — set by the government and reviewed each quarter.. Investing the maximum ₹1.5 lakh per year consistently for 25 years can build a corpus of approximately ₹66 lakh at 7.1% interest.. PPF has a 15-year lock-in but can be extended in 5-year blocks indefinitely — the longer you stay, the bigger the compounding effect..

What you should do: Start your PPF contribution before April 5 each year — deposits made by April 5 earn interest for the full month of April, giving you one extra month of returns.. Invest in a lump sum at the start of the financial year rather than monthly instalments — this maximises the interest earned on your full deposit.. If you already have a PPF account nearing 15 years, extend it in 5-year blocks with fresh contributions instead of withdrawing — your compounding accelerates sharply after year 20..

PPF interest is calculated on the lowest balance between the 5th and last day of each month — always deposit before the 5th to avoid losing a full month of interest on that amount.