PPF is one of the most preferred long-term investment schemes in India. It offers attractive interest, tax benefits, and a large, tax-free maturity amount.
While the maturity period is 15 years, the benefits don’t end there. Even after maturity, PPF can continue to help you grow your wealth.
3 Big Benefits After PPF Maturity
1. Full Withdrawal Option
After 15 years, you can withdraw your entire investment along with the interest earned.
For example, if you invested ₹5,000 monthly (₹60,000 per year), then in 15 years:
Total investment: ₹9 lakh
Interest earned (at 7.1%): ₹7.27 lakh
Maturity amount: ₹16.27 lakh
The best part is that this entire amount is completely tax-free.
2. Extend with Contribution
You can choose to extend your PPF account in blocks of 5 years.
To do this, submit Form-H within 1 year before maturity.
You can continue depositing money and earning interest.
Tax benefits under Section 80C will continue.
You can also make partial withdrawals during this period.
You can extend the account as many times as you want.
3. Extend without Contribution
Even if you don’t want to invest more, the account will automatically continue for 5 years.
You’ll keep earning interest on your existing balance.
No fresh deposits are allowed in this mode.
Useful for those who want passive returns without new investment.
Expected Returns from PPF at 7.1% Interest Rate
| Monthly Investment | Total Investment (15 yrs) | Interest Earned | Maturity Amount |
|---|---|---|---|
| ₹1,000 | ₹1.8 lakh | ₹1.38 lakh | ₹3.18 lakh |
| ₹3,000 | ₹5.4 lakh | ₹4.15 lakh | ₹9.55 lakh |
| ₹5,000 | ₹9 lakh | ₹7.27 lakh | ₹16.27 lakh |
| ₹10,000 | ₹18 lakh | ₹14.54 lakh | ₹32.54 lakh |
PPF Extension Example: How It Helps Build Wealth
Let’s say you invest the maximum allowed amount of ₹1.5 lakh per year.
After 15 years:
Total investment: ₹22.5 lakh
Total interest: ₹18.18 lakh
Maturity amount: ₹40.68 lakh (tax-free)
If extended for 5 more years with contributions (total 20 years):
Total investment: ₹30 lakh
Estimated maturity amount: ₹66.58 lakh
If extended for 10 more years (total 25 years):
Total investment: ₹37.5 lakh
Estimated maturity amount: ₹1.03 crore
Where to Open a PPF Account
You can open a PPF account at any nationalized bank (e.g., SBI, PNB), private bank (e.g., HDFC, ICICI), or post office.
Any Indian citizen can open a PPF account.
Parents can open PPF accounts for minor children.
HUFs (Hindu Undivided Families) cannot open new PPF accounts anymore, but existing ones can continue.
One person can open only one PPF account.
Important PPF Rules
Minimum annual deposit: ₹500
Maximum annual deposit: ₹1.5 lakh
Tax benefits under Section 80C of Income Tax Act
Interest rate is reviewed every quarter by the government.
