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Looking for a safe, tax-efficient, and high-yield long-term investment option? The Public Provident Fund (PPF) stands out as one of the most reliable savings schemes in India. Backed by the Government of India, PPF offers attractive tax benefits, guaranteed returns, and long-term wealth-building opportunities. By simply investing ₹1.5 lakh annually, you could build a corpus of over ₹1.54 crore over 30 years — all while enjoying tax-free growth.

In this article, we explain the rules for PPF withdrawal, how to maximise your returns, and why PPF is an ideal option for long-term investors.

✅ Why PPF is a Top Investment Choice

PPF comes with a host of benefits that make it ideal for both salaried and self-employed individuals:

• Tax Deduction: Investments up to ₹1.5 lakh per year qualify for deductions under Section 80C of the Income Tax Act.

• Tax-Free Earnings: Both the interest earned and the maturity amount are completely tax-exempt.

• Safe and Government-Backed: Being a sovereign-backed scheme, your money is secure.

Currently, the annual interest rate for PPF is 7.1%, compounded annually.

🕒 PPF Account Tenure and Extensions

The standard maturity period for a PPF account is 15 years, but that’s not where it has to end. After 15 years, you have two options:

1. Continue the account without further contributions and allow your savings to grow with compounded interest.

2. Extend in 5-year blocks with or without fresh deposits, which can significantly increase your corpus over time.

💸 Can You Withdraw from PPF Before 15 Years?

Yes, PPF allows partial withdrawals even before the 15-year maturity period — but with conditions:

• Withdrawals are permitted once per financial year after completing 5 years from the account opening year.

• For instance, if you opened your account in FY 2024–25, you’ll become eligible for your first partial withdrawal in FY 2030–31.

• Withdrawal Limit: You can withdraw up to 50% of the balance at the end of the 4th or 5th financial year, whichever is lower.

📈 How to Grow ₹1.5 Lakh/Year into ₹1.54 Crore

By consistently investing ₹1.5 lakh every year, here’s how your PPF corpus grows over time:

👉 After 15 Years:

• Total Investment: ₹22.5 lakh

• Estimated Interest: ₹18.18 lakh

• Maturity Value: ₹40.68 lakh

You can extend your account for another 5 years and continue your annual investments.

👉 After 20 Years:

• Total Investment: ₹30 lakh

• Estimated Interest: ₹36.58 lakh

• Total Corpus: ₹66.58 lakh

Still not stopping? You can opt for another 5-year extension.

👉 After 25 Years:

• Total Investment: ₹37.5 lakh

• Estimated Interest: ₹65.58 lakh

• Total Corpus: ₹1.03 crore

Yes, you become a crorepati — all through disciplined investing and the power of compounding.

👉 After 30 Years:

• Total Investment: ₹45 lakh

• Estimated Interest: ₹1.09 crore

• Total Corpus: ₹1.54 crore

🔄 Loan Facility Against PPF

Need emergency funds without breaking your savings?

• PPF allows you to take a loan between the 3rd and 6th year of account opening.

• You can borrow up to 25% of the balance at the end of the second year preceding the loan year.

• Loans come with low interest rates and have a repayment tenure of 36 months.

🏁 Final Takeaway: PPF is a Long-Term Wealth Machine

If you are looking for a low-risk, tax-efficient, and long-term wealth-building strategy, the Public Provident Fund is a goldmine. With consistent annual contributions of ₹1.5 lakh and a long-term mindset, you can comfortably build a retirement corpus of over ₹1.54 crore — without paying a single rupee in tax.

So, whether you’re planning for your retirement, your child’s education, or future financial independence — start investing in PPF today and let the power of compounding work for you.

Tags: PPF Investment Plan 2025, Public Provident Fund Withdrawal Rules, PPF Calculator, Tax-Free Investment India, Long-Term Savings, PPF Returns, Retirement Planning India