Investment Strategy: How you can earn interest in this guaranteed return scheme without investing a single rupee after 15-year lock-in period

PPF Investment Strategy: For those who prioritise safe investments and seek to grow their wealth over the long term, the PPF is an excellent option. Investors can contribute between Rs 500 and Rs 1.5 lakh annually, allowing flexibility based on individual capacity. The PPF matures in 15 years, currently offering an interest rate of 7.1 per cent.

In addition to its attractive interest rate, the PPF scheme provides tax benefits in three ways: on investment, interest/returns, and maturity. These features make it a popular choice among investors. However, there are some lesser-known details about this scheme that you should be aware of:

You’ll Still Earn Interest Even After Maturity

While the PPF scheme matures after 15 years, if you don’t withdraw the money after it matures, there’s no need to worry. Your funds remain completely safe, and you continue to earn interest on the deposited amount. This interest is calculated according to PPF rules, and tax exemptions still apply.

Investors have the flexibility to withdraw funds whenever they choose. They can either take out the entire amount or withdraw only a portion, allowing them to benefit from future interest rates while keeping the remaining balance in the account.

Also Read: Power of 10X20X15 SIP Formula: How you can build over Rs 1.5 crore corpus for your child by their 20th birthday — See Calculations

Extension Options with Ongoing Contributions

If you wish to maximise your earnings and build a larger corpus, you can extend your PPF account while continuing to contribute. The account can be extended multiple times in blocks of five years.

How to Extend Your PPF Account

To extend your PPF account while continuing contributions, you must submit an application to the bank or post office where your account is held. This application should be submitted within one year of the maturity date. You’ll also need to complete a form for the extension, which must be submitted at the same branch where your PPF account was opened.