PPF Maturity Return: Earn ₹26.63 lakh by investing Rs 5000, just keep these rules in mind Star_border ​

PPF Maturity Return: Want to start investing or are looking for a way to earn good income from interest. Or want an investment where there is no risk. In such a situation, Public Provident Fund i.e. PPF scheme is the best. Any citizen of India can invest in it. The biggest thing is that the benefits provided in it are the most preferred. Banks and post offices themselves explain the benefits of investing in PPF. Good interest, tax free investment, the money received on maturity is completely yours. This is a great tool from investment point of view. Maturity period is 15 years. But, the investment can be extended even after 15 years. If you give extension, your returns will run at rocket speed and you will watch as the initial investment of Rs 5000 becomes more than Rs 26 lakh.

At the time of maturity you get 3 options. It is very important to understand these 3 options. First of all, withdraw your money after maturity. Secondly, even if you do not withdraw the money, interest will continue to accrue. Third, extension can be given for 5 years with new investment. Let us understand how and what needs to be done.

1. Withdraw full amount on maturity

Withdraw your deposited amount and interest on maturity of PPF account. In case of account closure, the entire money will be transferred to your account. The money and interest received on maturity will be completely tax free. Apart from this, income tax exemption is available on investments up to Rs 1.5 lakh every year. You will not have to pay any tax on whatever money you have deposited during the entire tenure.

2. Extend PPF investment for 5 years

The second option is to increase investment after maturity. In the scheme, the option of account extension is given for a period of 5 years. However, if you want extension for next 5 years then you have to inform the bank or post office 1 year before the maturity of the PPF account. The good thing is that the rule of premature withdrawal does not apply at the time of extension and you can withdraw the money anytime.

3. Scheme without increasing investment even after maturity

Third option in PPF account, even if you do not choose both the above options, the account will remain operational even after maturity. There will be no need for new investment in this. Maturity will automatically extend to 5 years. But, the biggest advantage will be that you will continue to get interest on the deposited amount during this entire period. After this, after completion of 5 years, it can be extended again in the same manner.

Where can you open PPF account?

PPF account can be opened in any government or private bank. Apart from this, you can also open an account in any post office branch of your city. There is also an option to open an account for a minor. However, the parent's share on behalf of the minor continues till the age of 18 years. As per Finance Ministry rules, a Hindu Undivided Family (HUF) cannot open a PPF account.

How will Rs 5000 become Rs 26.63 lakh?

At present 7.1 percent interest is being given in Public Provident Fund. Interest is calculated annually. But, its decision is taken on quarterly basis. There has been no change in its interest rates for a long time. Let us assume that if you invest at the same interest rate for 15 or 20 years, a large corpus will be created in different amounts. You can see the calculations below.

Extend PPF investment for 5 years