The Public Provident Fund (PPF) has long been a go-to option for Indian investors looking to grow their savings the safe and steady way. It’s designed to encourage consistent, small investments that support your post-retirement life while extending tax incentives.
Currently, the PPF offers an interest rate of 7.1%, which you can maximise with early contributions and by leveraging long-term PPF 15-year maturity benefits.
The Public Provident Fund (PPF) comes with a maturity period of 15 years that extends an opportunity to maximise long-term compounding and wealth accumulation. Here are some of the PPF 15-year maturity benefits:
PPF is a government-backed scheme free from any risk. It offers guaranteed returns and protection from legal claims. Also, you can claim tax benefits on both investments and returns.
Enjoy full tax benefits with deductions on contributions, tax-free interest and exempt maturity proceeds.
You can open a PPF account with ₹100 and invest ₹500 to ₹1,50,000 annually in a lump sum or instalments.
Even though it has a 15-year lock-in period, you will still have options to use the funds in your account. You can:
You can withdraw the full amount after 15 years or extend it in five-year blocks for continued growth. Here, you can earn interest without any deposit.
To earn the highest possible returns from your Public Provident Fund (PPF) investments, consider the following strategies:
Invest a Lump Sum at the Beginning of the Financial Year
Depositing the principal amount at the start will allow you to earn interest on the entire amount for a full year. Making regular monthly contributions is beneficial for sure, but an early lump sum investment will ensure that your funds generate returns. It will be for a longer period, allowing you to maximise your earnings.
Use Internet Banking for Timely Payments
Connecting your bank account with the bank’s online portal ensures that you make timely payments without delays. By enabling online transfers, you can automate or manually deposit funds with ease. It will prevent missed payments and create a road for your long-term returns.
Make Strategic Investments
The benefits of investing in PPF include tax advantages and stable returns, making it an ideal option for long-term retirement savings. Maximise contributions while also allocating funds for education.
Start Investing Early
The sooner you start investing, the more you benefit from PPF compounding interest. Beginning early allows you to contribute smaller amounts while still reaching your financial goals efficiently.
Keeping track of your Public Provident Fund (PPF) balance helps you monitor your savings and plan your finances better. Here’s how you can check your PPF balance quickly.
Check Your PPF Balance Online
Note: The process may differ depending on your bank
Check Your PPF Balance Offline
Note: Your passbook contains all key details, including your account number, transactions and balance.
Check Your PPF Balance at the Post Office
If you have a PPF account at the post office:
Note: This method is helpful for those in rural areas with limited banking access.
1. Can I extend my PPF beyond 15 years?
Yes, after maturity, you can extend it in blocks of 5 years. This way, you can continue to earn interest without making further deposits.
2. How often should I deposit to maximise compounding?
Experts recommend that PPF account holders deposit their contributions before the 5th of each month to maximise interest earnings. Since banks calculate interest monthly, depositing on or before the 5th ensures that the amount is included in that month’s interest calculation.
3. Is PPF suitable for short-term goals?
PPF comes with a 15-year lock-in period and limited liquidity options, which is why they are not suitable for short-term goals.
4. Can I withdraw partially during the 15-year term?
Yes, you can withdraw part of your PPF balance after 5 years of opening the account, but some rules and limits apply.
5. How do I link PPF to my retirement plan?
You cannot directly link a PPF account to a retirement plan, but you can include it in your retirement strategy. Long-term PPF strategy investment that helps build your retirement fund. You can withdraw the amount after 15 years or extend the account in 5-year blocks.
