Public Provident Fund (PPF) investment is popular among investor with low-risk appetite and those who are content with fixed returns. While you can get interest on your investment even after the maturity period of 15 years, you returns are tax-free.
PPF: Public Provident Fund (PPF) is a good investment option. It is a popular investment option for investor with low-risk appetite, and those who are content with fixed returns. It offers several benefits such as tax free investment.
The maturity period for the PPF scheme is 15 years. But, even after 15 years, many benefits are available.
In this write-up, we will tell you 3 such benefits.
One of the biggest advantages of the scheme is that even if discontinue investing money in it after maturity, you will continuously receiving interest.
After the maturity period of 15 years, you get 3 options. You can pick any of them to increase your money.
Read More: Here’s How Salaried Employees Can Check Their EPF Balance
1. Withdrawal of PPF on maturity
On maturity of your PPF account, withdraw the amount you had deposited in it and the interest received on it.
In case of account closure, you can transfer the entire money to your bank account.
The withdrawn money and the interest you receive on it is completely tax free. Also, you don’t have to pay any tax on the number of years you have invested.
2. Continue investing even after 15 years
The second advantage or option is that you can extend your account further on maturity.
Account extension can be taken for a tenure of 5-5 years.
But, keep in mind that you will have to apply for extension only 1 year before the maturity of the PPF account.
However, you can withdraw money during the extension.
The rules of pre-mature withdrawal do not apply in this.
Read More: PF Deducted From Salary By Employer, Not Deposited To EPFO? Here’s What To Do Next
3. Account will remain operational without investment
The third-biggest advantage of the PPF account is that even if you don’t choose the either of the above two options, your account will continue to operate after maturity.
Even if you don’t invest, maturity will automatically extend by 5 years, and you will also keep getting interest on it.
Where can you open PPF account?
PPF account can be opened in any government or private bank.
Also, you can open an account in any post office of your city.
Minors can also open an account, but the parents’ holding on their behalf will remain till the child turns 18.
However, as per Finance Ministry rules, a Hindu Undivided Family (HUF) cannot open a PPF account.
Read More: EPFO Adds 17.21 Lakh Net Members in September; Check Details
How much money will you get on how much investment?
At present 7.1 per cent interest is being given in Public Provident Fund.
If you invest for 15 or 20 years with this interest rate, you can create a huge fund.
Though the the PPF scheme is considered a fixed interest rate scheme, the government reviews the interest after every three months and the rate is subject to change.
PPF: Returns on Investments
| 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 |
