PPF Investment Rules: The maturity period of PPF is 15 years, but if the investor wishes, he can extend it any number of times for 5 years at a time. In this way, this scheme can be maintained even during the entire job period.
PPF New Calculator: The central government has not made any change in the interest rates on small savings popular among investors, especially the salaried class. From July to September 2025, 7.1 percent annual interest (PPF Interest Rate) will continue to be available on PPF.
The maturity of PPF is 15 years, that is, it is a scheme focused on long-term investment. Financial advisors also consider it a safe scheme for the long term. How much fund can you raise through this scheme. Is it 1 crore or 1.50 crores. The answer is the period you hold.
Public Provident Fund is a government scheme designed for long-term investment. If you keep investing in this government scheme for a long period or for the entire job period, then it can give a surprise on retirement. Now the question is that if the maturity is of 15 years, then how is it possible to hold it for 25 years or 30 years. This is possible, it is made possible by the rule related to extension in this scheme.
Rules for investing in PPF
The maturity of PPF is 15 years, but if the investor wants, he can extend it as many times as he wants, for 5 years at a time. In this way, this scheme can be maintained for the entire job period as well. If you take advantage of this rule related to extension properly, then your future can be financially secure to a great extent. Here we have given the calculation on investment from 28 years to 58 years i.e. 30 years of job.
PPF Calculator: Investment from 28 to 58 years
Starting a PPF account at the age of 28 and maintaining it till 58 years means that after the maturity of 15 years, you continued investing in it 3 times for 5 years i.e. by adopting the formula of Triple 5.
- Deposit in one financial year: Rs 1.50 lakh
- Interest rate: 7.1 percent per annum
- Total deposit in 15 years: Rs 22,50,000
- Total fund after 15 years: Rs 40,68,209
- If extended 3 times
- Total deposit in 30 years: Rs 45,00,000
- Total fund after 30 years: Rs 1,54,50,911
- Interest benefit: Rs 1,09,50,911
What are the benefits of extending PPF?
The biggest advantage of extending this savings scheme is that you can create a large corpus through it till your retirement which can be Rs 1.50 crore. At the same time, you will also get a good amount of funds from the EPF account on retirement. In such a situation, your old age will become completely tension free.
Monthly income of Rs 89,000 on closing balance
Here, by investing for 30 years, you have collected a fund of Rs 1.50 crore till retirement; now if you want to earn monthly from this fund, then you can extend it again and take advantage. If you have extended the scheme for 5 years without investing anything, then you will get annual interest on the closing balance. At the same time, you can withdraw any percentage of the entire amount once every year. It can be up to 100 percent.
Here you will get 7.1 percent annual interest on a closing balance of Rs 1.50 crore. This will be Rs 10,65,000 in a year. You can withdraw this entire interest amount in one go in a year. If you divide it into 12 months, it will be around Rs 88,750 per month. There will be no tax on this withdrawal.
