Public Provident Fund: An excellent investment choice is the Public Provident Fund (PPF). It is a well-liked investment choice for people who are comfortable with fixed returns and have a low tolerance for risk. It provides a number of advantages, including tax-free investment. There is a 15-year maturity period for the PPF scheme. But a lot of advantages are still accessible even after 15 years.
Interest Continuation Beyond Maturity
The scheme’s ability to continue paying interest even if you stop investing after it matures is one of its greatest features. Following the fifteen-year maturity period, you have three choices. To increase your money, you can choose any of them.
| Investment per month | Return after 15 years | Return after 20 years |
| Rs 1000 | Rs 3.35 lakh | Rs 5.32 lakh |
| Rs 2000 | Rs 6.50 lakh | Rs 10.65 lakh |
| Rs 3000 | Rs 9.76 lakh | Rs 15.97 lakh |
| Rs 5000 | Rs 16.27 lakh | Rs 26.63 lakh |
Withdrawal of PPF on Maturity
Take out the money you deposited and the interest you earned from your PPF account when it matures. You can move the whole amount to your bank account in the event that your account is closed. Both the money you took out and the interest you earned are fully tax-free. In addition, you are exempt from paying taxes based on how long you have been investing.
Keep investing even after fifteen years
The ability to extend your account further upon maturity is the second benefit or choice. An account extension is available for a period of five to five years. However, bear in mind that you will only need to request an extension one year prior to the PPF account’s maturity. You are still able to take out cash during the extension, though. In this case, the premature withdrawal guidelines are not applicable.
Without investment, the account will continue to function
The fact that your PPF account will continue to function even if you select neither of the first two options is the third-biggest benefit of having one. You will continue to receive interest on it and the maturity will automatically be extended by five years even if you choose not to invest.
Where can a PPF account be opened?
Any public or private bank may open a PPF account. You can also register for an account at any post office in your city. Although minors can open accounts, the parents’ holding will continue until the child turns eighteen. But according to guidelines from the Finance Ministry, a Hindu Undivided Family (HUF) is not allowed to open a PPF account.
With what level of investment, how much money will you get?
Currently, the Public Provident Fund is giving out 7.1% interest. With this interest rate, you can accumulate a sizable fund if you invest for 15 or 20 years. Even though the PPF plan is thought of as having a fixed interest rate, the rate is subject to change because the government reviews it every three months.
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