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

PPF investment strategy: For those who prioritize safe investments and want to grow their wealth over time, PPF is an excellent option. Investors can contribute between Rs 500 and Rs 1.5 lakh per year, allowing flexibility based on individual capacity. The PPF matures in 15 years, currently offering an interest rate of 7.1 percent.

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

You Will Still Earn Interest Even After Maturity

Although the PPF scheme matures after 15 years, if you do not withdraw the money after maturity, there is no need to worry. Your funds remain completely safe, and you continue to earn interest on the deposited amount. This interest is calculated as per PPF rules, and tax exemption is still applicable.

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

Also read: Power of 10X20X15 SIP Formula: How to build your child more than Rs 1.5 crore corpus by his 20th birthday — See Figures

Extension Options for Continuing Contributions

If you wish to increase your income and build a large corpus, you can expand your PPF account while continuing to contribute. The account can be extended multiple times in blocks of five years.

How to Grow Your PPF Account

To extend your PPF account while continuing to contribute, you have to send a request to the bank or post office where your account is maintained. This application must be submitted within one year of the maturity date. You will also need to fill an extension form, which should be submitted to the same branch where your PPF account was opened.