Public Provident Fund (PPF): You have likely become acquainted with the PPF’s prominence, area of expertise, and fascination. This program is exclusive to Indian nationals. This accounted for its reputation as the most popular. However, the availability of benefits enhances its appeal. Despite the fact that banks and post offices themselves describe the advantages of investing in PPF, However, it contains numerous components that the average investor is frequently unaware of. Whether it be interest, a tax-free investment, or the maturity amount. This investment instrument is outstanding in numerous respects. The period of maturity is fifteen years. However, if you increase your investment period beyond 15 years, your capital will appreciate more rapidly. Permit us to explain this formula to you…
To begin, comprehend the three situations. The greatest benefit of the scheme is that you will continue to earn interest on your investment even if you do not reinvest it after the 15-year maturity period. There are a total of three maturity alternatives accessible through a PPF account. You can augment your funds by selecting any of the available alternatives.
Understanding PPF Loans: A Comparison with Personal Loans, Interest Rates, and Rules
Rules for PPF Withdrawals
At the maturity of your PPF account, you are entitled to withdraw both the principal and interest that you deposited.
The full amount of your funds will be transferred back to your account in the event that it is closed.
Notably, both the principal and interest received at maturity will be exempt from taxation.
Additionally, no tax will be withheld with respect to the number of years invested.
Increase investment tenure for the PPF
The second benefit, or alternative, is the ability to further extend the account at maturity.
Account extensions for terms of five to six years are possible.
However, bear in mind that you may only request an extension of your PPF account one year prior to its maturity.
Nevertheless, withdrawals are permitted throughout the extension.
There are no pre-mature withdrawal regulations applicable to this.
PPF: Amount increase without investment
The third greatest benefit of the PPF account is that it will continue to function after maturity even if neither of the aforementioned two options are selected.
You are not required to make an investment in it.
Maturity will be extended automatically by five years.
The positive aspect is that your interest in it will continue to grow.
A period extension of five to six years may also be applicable in this instance.
Where can one establish a PPF account?
Access to a PPF account is available at both public and private financial institutions.
Additionally, you may establish an account at any city post office.
Although minors are permitted to create an account, the parental hold will remain in effect for an additional 18 years.
How does Rs 1,000 become Rs 5.16 lakh in the PPF?
Currently, a 7.1 percent interest rate is applied to PPF. Using this interest rate and investing for 15 to 20 years, it is possible to amass a substantial fund.
PPF: Return you will get in 5 years
| Year of deposit | Amount deposited | Interest earned | Year-end Balance |
| 1yr | ₹ 12,000 | ₹ 462 | ₹ 12,462 |
| 2yr | ₹ 24,000 | ₹ 1,808 | ₹ 25,808 |
| 3yr | ₹ 36,000 | ₹ 4,102 | ₹ 40,102 |
| 4yr | ₹ 48,000 | ₹ 7,411 | ₹ 55,411 |
| 5yr | ₹ 60,000 | ₹ 11,806 | ₹ 71,806 |
PPF: Return you will get in 10 years
| Year of deposit | Amount deposited | Interest earned | Year-end Balance |
| 1yr | ₹ 12,000 | ₹ 462 | ₹ 12,462 |
| 2yr | ₹ 24,000 | ₹ 1,808 | ₹ 25,808 |
| 3yr | ₹ 36,000 | ₹ 4,102 | ₹ 40,102 |
| 4yr | ₹ 48,000 | ₹ 7,411 | ₹ 55,411 |
| 5yr | ₹ 60,000 | ₹ 11,806 | ₹ 71,806 |
| 6yr | ₹ 72,000 | ₹ 17,366 | ₹ 89,366 |
| 7yr | ₹ 84,000 | ₹ 24,173 | ₹ 1,08,173 |
| 8yr | ₹ 96,000 | ₹ 32,314 | ₹ 1,28,314 |
| 9yr | ₹ 1,08,000 | ₹ 41,886 | ₹ 1,49,886 |
| 10yr | ₹ 1,20,000 | ₹ 52,990 | ₹ 1,72,990 |
PPF: Return you will get in 15 years
| Year of deposit | Amount deposited | Interest earned | Year-end Balance |
| 1yr | ₹ 12,000 | ₹ 462 | ₹ 12,462 |
| 2yr | ₹ 24,000 | ₹ 1,808 | ₹ 25,808 |
| 3yr | ₹ 36,000 | ₹ 4,102 | ₹ 40,102 |
| 4yr | ₹ 48,000 | ₹ 7,411 | ₹ 55,411 |
| 5yr | ₹ 60,000 | ₹ 11,806 | ₹ 71,806 |
| 6yr | ₹ 72,000 | ₹ 17,366 | ₹ 89,366 |
| 7yr | ₹ 84,000 | ₹ 24,173 | ₹ 1,08,173 |
| 8yr | ₹ 96,000 | ₹ 32,314 | ₹ 1,28,314 |
| 9yr | ₹ 1,08,000 | ₹ 41,886 | ₹ 1,49,886 |
| 10yr | ₹ 1,20,000 | ₹ 52,990 | ₹ 1,72,990 |
| 11yr | ₹ 1,32,000 | ₹ 65,733 | ₹ 1,97,733 |
| 12yr | ₹ 1,44,000 | ₹ 80,234 | ₹ 2,24,234 |
| 13yr | ₹ 1,56,000 | ₹ 96,616 | ₹ 2,52,616 |
| 14yr | ₹ 1,68,000 | ₹ 1,15,013 | ₹ 2,83,013 |
| 15yr | ₹ 1,80,000 | ₹ 1,35,568 | ₹ 3,15,568 |
PPF: Return you will get in 20 years
| Year of deposit | Amount deposited | Interest earned | Year-end Balance |
| 1yr | 12,000.00 | ₹ 462 | ₹ 12,462 |
| 2yr | 24,000.00 | ₹ 1,808 | ₹ 25,808 |
| 3yr | 36,000.00 | ₹ 4,102 | ₹ 40,102 |
| 4yr | 48,000.00 | ₹ 7,411 | ₹ 55,411 |
| 5yr | 60,000.00 | ₹ 11,806 | ₹ 71,806 |
| 6yr | 72,000.00 | ₹ 17,366 | ₹ 89,366 |
| 7yr | 84,000.00 | ₹ 24,173 | ₹ 1,08,173 |
| 8yr | 96,000.00 | ₹ 32,314 | ₹ 1,28,314 |
| 9yr | 1,08,000.00 | ₹ 41,886 | ₹ 1,49,886 |
| 10yr | 1,20,000.00 | ₹ 52,990 | ₹ 1,72,990 |
| 11yr | 1,32,000.00 | ₹ 65,733 | ₹ 1,97,733 |
| 12yr | 1,44,000.00 | ₹ 80,234 | ₹ 2,24,234 |
| 13yr | 1,56,000.00 | ₹ 96,616 | ₹ 2,52,616 |
| 14yr | 1,68,000.00 | ₹ 1,15,013 | ₹ 2,83,013 |
| 15yr | 1,80,000.00 | ₹ 1,35,568 | ₹ 3,15,568 |
| 16yr | 1,92,000.00 | ₹ 1,58,435 | ₹ 3,50,435 |
| 17yr | 2,04,000.00 | ₹ 1,83,778 | ₹ 3,87,778 |
| 18yr | 2,16,000.00 | ₹ 2,11,771 | ₹ 4,27,771 |
| 19yr | 2,28,000.00 | ₹ 2,42,605 | ₹ 4,70,605 |
| 20yr | 2,40,000.00 | ₹ 2,76,479 | ₹ 5,16,479 |
