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Public Provident Fund Calculator: Every parent dreams of long-term financial planning to ensure a secure and prosperous future for their children. In this regard, the Public Provident Fund (PPF) remains one of the country's most trusted and secure government savings schemes. Thanks to the absence of risk and the assurance of guaranteed returns, it serves as an excellent tool to easily build a substantial wealth fund for a child's higher education, studies abroad, marriage, or general financial security.

Any parent or legal guardian can open a PPF account in their minor child's name at a bank or post office. Once the child turns 18, the account status is updated to 'major'. Let us understand, in simple terms, how much wealth—running into crores—your child could accumulate by the age of 60 through the power of compounding if you invest ₹5,000 per month for them.

Currently, the PPF offers an annual interest rate of 7.1%. The age at which you start this investment for your child significantly impacts the total corpus accumulated by the time they reach the age of 60 (retirement).

Refer to the figures below to understand the total amount accumulated at age 60 based on a monthly investment of ₹5,000 started at different ages:

Starting at age 10 (50-year investment): The total invested amount will be ₹30 lakh. The interest earned alone will exceed ₹2.40 crore. The total maturity value at age 60 will be over ₹2.70 crore.

Starting at age 12 (48-year investment): The total invested amount will be ₹28.80 lakh. The interest earned will exceed ₹2.05 crore. The total maturity value at age 60 will be over ₹2.34 crore.

Starting at age 15 (45-year investment): The total invested amount will be ₹27 lakh. The interest earned will exceed ₹1.62 crore. At the age of 60, the total maturity value will exceed ₹1.89 crore.

If started at the age of 18 (a 42-year investment period): The total invested amount will be ₹25.20 lakh. It will earn over ₹1.27 crore in interest. At the age of 60, the total maturity value will exceed ₹1.52 crore.

The calculations above clearly demonstrate how significantly even a slight delay in starting the investment can reduce your child's final corpus. If you start investing when the child is 10 years old, the fund grows to ₹2.70 crore. However, if you delay by just 8 years and start when the child is 18, the fund shrinks to ₹1.52 crore. In other words, a delay of merely 8 years results in a massive loss of over ₹1.25 crore for your child.

Disclaimer: This content has been sourced and edited from Money Control. 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.