PPF Calculation: ₹40 lakh at age 18 and ₹5 crore at age 60! This government scheme will make you a crorepati..

Every parent dreams of providing their children with quality higher education and securing their financial future. If you are looking for a safe and tax-free investment option for your child's future, the Public Provident Fund (PPF) is an excellent choice.

By opening a PPF account in your child's name—whether at birth or during their childhood—you can ensure they have a substantial sum accumulated by the time they turn 18. Let’s use calculations to understand how much of a fund your child could receive after 18 years by investing ₹50,000 or ₹1 lakh annually, and how this same PPF account could grow into a retirement corpus of ₹6.75 crore by the time they reach the age of 60.

How to open a PPF account in a child's name?

There is no minimum age limit for opening a PPF account for a child. Parents can open an account in the name of a child—from a newborn to any age—at a bank or post office. However, once the child turns 18 (becomes a major), the account is transferred to their name as a 'major account.' Additionally, a PPF account matures in 15 years, after which it can be extended in blocks of 5 years.

Calculation for an investment of ₹1 lakh

Annual investment: ₹1,00,000
Monthly investment: Approximately ₹8,340
Total investment over 18 years: ₹18,00,000
Interest earned over 18 years: ₹18,76,000
Total maturity fund at 18 years: Over ₹36.76 lakh
Corpus (total fund) at age 60: If you continue this investment for 50 years, your total deposited amount will be ₹50 lakh; earning approximately ₹4 crore in interest, your total fund would grow to ₹4.50 crore.

Calculation for a ₹50,000 Investment

Annual investment: ₹50,000
Monthly investment: Approximately ₹4,200
Total investment over 18 years: ₹9 lakh
Interest earned over 18 years: ₹9.38 lakh
Maturity value after 18 years: Over ₹18.38 lakh
Corpus at age 60: Investing for 50 years results in a substantial fund of ₹2.25 crore by the age of 60.

Benefits of Early Investment
Experts believe that the earlier one starts investing, the greater the benefits. Investing at a younger age allows one to leverage the power of compounding.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.