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Public Provident Fund (PPF) is one of the most preferred investment schemes in India. The secret of its popularity is the great benefits it offers - whether it is an attractive interest rate, an opportunity for tax-free investment, or a huge amount received on maturity. Usually, the maturity period of PPF is 15 years, but do you know that this scheme can make you rich even after the completion of 15 years? Today we are going to tell you about such 3 tremendous benefits that you get after the maturity of your PPF account, after knowing that you will also make up your mind to invest in this scheme. The most important thing is that after maturity, whether you want to deposit money or not, you will keep getting interest.

PPF Account: These 3 benefits are available after maturity

1. Option to withdraw the entire amount on maturity (Withdrawal on Maturity)
PPF account matures after 15 years. At this time you can withdraw your entire deposit amount and the interest received on it.

Example: If you have deposited ₹5000 every month i.e. ₹60,000 annually, then in 15 years:

Total investment: ₹9 lakh

Interest received (at 7.1%): ₹7.27 lakh

Maturity amount: ₹16.27 lakh

The biggest thing is that all this money is completely tax-free.

2. You can extend the account after 15 years (Extend with Contribution)

If you want, you can extend the PPF account for 5 years each.

For this, it is necessary to apply for an extension by filling Form-H within 1 year before maturity.

You can also withdraw money during this period but with some conditions.

You will continue to get interest even during the extension and tax exemption on investment will continue.

You can extend it in blocks of 5 years as many times as you want - there is no limit.

3. The account will continue to run even without investment and interest will also be received (Extended without Contribution)
Even if you do not want to invest, the PPF account will be automatically extended for 5 years.
During this time you will continue to get interest on the previous balance.
However, you cannot put new money in this mode.
Still, this option is beneficial for those investors who do not want to invest money but want to continue earning interest.
pf account maturity benefits 3 big advantages after 15 years

How much will you earn on investing in PPF? (at 7.1% interest rate)
Monthly Investment Total Investment (15 years) Interest Total Amount
₹1000 ₹1.8 lakh ₹1.38 lakh ₹3.18 lakh
₹3000 ₹5.4 lakh ₹4.15 lakh ₹9.55 lakh
₹5000 ₹9 lakh ₹7.27 lakh ₹16.27 lakh
₹10,000 ₹18 lakh ₹14.54 lakh ₹32.54 lakh

Note: This calculation is based on a 7.1% interest rate and an annual investment limit of ₹60,000.

PPF Calculation: How much investment, how much profit?
Let us see how much funds can be created if you invest regularly in PPF and extend it (assuming a current interest rate of 7.1% p.a.).

Suppose you deposit a maximum of ₹1,50,000 in PPF every year.

After 15 years (on maturity)
Total investment: ₹22,50,000
Total interest: approx. ₹18,18,209
Maturity value: approx. ₹40,68,209 (this amount will be completely tax-free)
If you extend for another 5 years with contributions (total 20 years)
Total investment (in 20 years): ₹30,00,000
15 year balance (₹40,68,209) will keep growing for the next 5 years + new investment.
Estimated maturity value after 20 years: approx ₹66,58,288
If you extend for another 5 years with contributions (total 25 years)
Total investment (in 25 years): ₹37,50,000
The 20-year balance (₹66,58,288) will keep growing for the next 5 years + new investment.
Estimated maturity value after 25 years: approx ₹1,03,08,015 (over Rs 1 crore)
(Note: This calculation is based on the current 7.1% interest rate. PPF interest rates are subject to change by the government every quarter, which may result in a difference in the actual returns. This calculation is based on annual investment made at the beginning of the year.)

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.