In today’s time, every person wants his small savings to become a huge amount in the future, but due to the fluctuations and risks of the stock market, many people are afraid to invest. For such people, Public Provident Fund (PPF) is a government option, which is completely safe and helps in creating a good fund in the long run. The special thing is that you do not need to invest a lot of money every month. If you deposit just Rs 4,000 per month regularly, this amount can turn into lakhs of rupees in a few years.

What is PPF and why is it special?

PPF i.e. Public Provident Fund is a savings scheme supported by the Government of India. The money invested in it is considered completely safe, because it is guaranteed by the government. This scheme has been specially designed for those who want to save with discipline for a long time. The biggest feature of PPF is that the interest received in it is tax-free and there is tax exemption on investment also i.e. savings as well as tax relief.

How does the PPF scheme work?

The tenure of PPF account is 15 years. In this you can invest minimum Rs 500 and maximum Rs 1.5 lakh in a year. You can invest all at once or in installments. At present, approximately 7.1 percent compound interest is available annually on PPF. Interest is compounded every year, making the money grow gradually as it is a government scheme, so there is no market risk.

Even when your PPF account completes 15 years, you are not forced to withdraw money. If you wish, you can extend the account for 5-5 years. Overall it can be operated for 25 years. If you do not withdraw money, interest continues to be earned on the deposited amount. This increases your savings without any extra effort.

How to earn Rs 13 lakh by depositing just Rs 4,000 a month?

If you deposit Rs 4,000 every month i.e. Rs 48,000 in a year in PPF account and continue this investment for 15 years, then the total investment will be Rs 7.20 lakh and the amount received after 15 years will be around Rs 13.01 lakh. The total benefit (interest) from this will be around Rs 5.81 lakh, that is, your small monthly savings creates a good fund for you.

What if investment continues for 25 years?

If you continue the investment even after 15 years and keep the money in PPF for a total of 25 years, then the magic of compound interest becomes more clearly visible. The estimated amount after 25 years will be around Rs 32.98 lakh. Out of this, about Rs 20.98 lakh is made only from interest. This is a great option for those who want to create a secure fund for retirement or children’s future.

Why is PPF a great option even today?

PPF is completely safe and government guaranteed, tax-free returns, facility to start with a small amount, ability to build a large corpus over a long period of time, and stable returns without any risk. If you want your small savings to gradually turn into a big sum, then PPF is one of the most reliable schemes even today.

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Do you know that your PPF account can be extended not just for 15 years but for lifetime? And if extension is done properly, your tax-free interest will also never stop! In this video, we will tell you the Extension Rules of PPF, the right method, and the mistake which can stop your earning. PPF account matures in 15 years and after that there are two ways to increase it: 1- Extension by Contributing (block of 5 years) If even after maturity you want to deposit money every year, then you will have to extend PPF in a block of 5 years by giving a written application. With this, both your 7.1% interest and tax benefits continue. 2- Auto Extension (without deposit) If you do not do anything after maturity, then PPF gets extended automatically. In this, you can withdraw money once every year, but if you do not make any deposit for a year, then you will never be able to make it a deposit account later. The most important thing – you can increase PPF unlimited times, in blocks of 5-5 years! Just remember to submit the Extension Form within 12 months of maturity.

Public Provident Fund: PPF i.e. Post Office Public Provident Fund is a long term savings scheme given by the government. Along with guaranteed returns, it also offers tax benefits under Section 80C of the Income Tax Act, 1961. Besides, the entire amount received on maturity is also tax free. This is a government scheme which gives guaranteed returns in the long term. Let us know how much you can earn in 18 years by investing Rs 5,000-10,000 every month so that you can make financial planning from now to secure your future.

Who can invest in PPF?

Anyone can invest in PPF – salaried class, businessmen or pensioners can open a PPF account. If someone is a minor, then in this situation his parents or legal guardian can open his PPF account. In the absence of parents, grandparents can start investing in PPF in the name of their grandchildren as legal guardians. Overall, any resident of India can invest in PPF. NRIs (Non-Resident Indians) cannot open PPF account.

How much amount should I start investing with?

The minimum amount of investment in PPF is Rs 500, that is, you can open your PPF account by depositing Rs 500. Whereas a maximum investment of Rs 1.5 lakh can be made. Its lock-in period is 15 years, after which if you want, you can extend it with an unlimited block of 5 years each.

On maturity, fill the account closing form and submit it along with your passbook and withdraw your share of the money. If you want, you can leave the maturity amount in your account and earn interest on it. You will be allowed to withdraw from your PF account once a year. In case of emergency, if you need money, you can withdraw up to 50 percent of the balance at the end of every fourth year.

Now let us know that if you deposit Rs 5000, Rs 7000 or Rs 10000 every month in your PF account for a period of 18 years, then how much will be deposited with you. Here we are calculating according to 7.1 percent interest rate.

How much will you get on an investment of Rs 5000?

An investment of Rs 5000 for 12 months means Rs 60000 are being deposited in the PF account annually. The investment amount in 18 years will be Rs 10,80,000, while the interest earned on it will be Rs 11,25,878. That means your maturity amount will be Rs 22,05,878.

How much will you deposit on an investment of Rs 7000?

By investing Rs 7000 every month in PF account, the annual investment (7000×12) will become Rs 84000. That means, in 18 years, the amount of your investment in PF account will be Rs 15,12,000, while the interest received on it will be Rs 15,76,230. According to this, the estimated maturity amount will be Rs 30,88,230.

How much money will you get on an investment of Rs 10000?

If you keep depositing Rs 10,000 in your PF account every month, your annual investment will be Rs 1,20,000 (10,000×12). In this way, in 18 years your deposit amount will increase to Rs 21,60,000 and you will get Rs 22,51,757 as interest on it. That is, on maturity you will get Rs 44,11,757.

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If you want an investment option that is tax-free, protected by the government and beneficial in the long term, Public Provident Fund (PPF) is a popular and trusted option. But the question is whether in today’s era, when both inflation and stock market (Sensex) are changing rapidly, is PPF still equally beneficial? In the 1990s, interest on PPF was up to 12%, but with time these rates fell and since 2020 till now it is stable at 7.1%. On the other hand, Sensex has given an average CAGR return of 12.2% in the last 10 years, while the average inflation rate has been 4.79%. However, capital gains tax has to be paid on stock market earnings, whereas PPF is completely tax-free and tax exemption under 80C is also available on investments up to ₹ 1.5 lakh annually. In this video/post we will understand how PPF has performed against inflation and the stock market, and whether it can still be considered a smart investment option.

Ppf account: There has been a lot of relief news for Public Provident Fund (PPF) account holders. The government has made the service free of updating or modifying nominee details to PPF Account. This will make it very easy for those who make small savings. Finance Minister Nirmala Sitharaman announced this on Thursday.

According to the Finance Minister, I have recently received the news of fees from financial institutions to update or modify the nominee details in PPF account. He said that necessary changes have been made in the Government Savings Promotion General Rules 2018 through the Gazette notification of April 2, 2025 to remove any fee related to updating the details of persons enrolled in PPF accounts.

Recently was informed that a fee was being Levied by Financial Institutions for Updating/Modifying Nominee Details in PPF Accounts.

Necessary changes are now made in the government saving promotion general rules 2018 via gazette notification 02/4/25 to remove Any Charges on… pic.twitter.com/hi33sbln4e

– Nirmala Sitharaman (@NSITHARAMAN) April 3, 2025

Now four people will be able to make nominee

In the Gazette notification, a fee of Rs 50 has been abolished for canceling or changing enrollment for small savings schemes run by the government. He said, the recently passed Banking Amendment Bill 2025 is allowed to make maximum four people nominees for payment of money, goods kept in safe custody and safety locker.

Let us know that in the Lok Sabha on Tuesday, the bank account holder has been allowed to make four people in his account in the Banking Law (Amendment), Bill, 2024. Due to this, deposits will have an option to make 4 people a nominee at all times or one after another. Along with this, customers taking lockers in the bank will have only the option of gradual enrollment so that the money deposited in the absence of the nominee can be transferred correctly.

Family interest will be protected

According to the earlier rules, if a person wanted to make his two children and his elderly mother a nominee of her PPF account and safety locker, then she also had to pay fees to update the nominee details and the number of nominees was also limited. With this, along with the long legal dispute, the right beneficiaries also missed many times unknowingly. With the recent changes, now three people will be able to make three people without any charge. This will not only protect the interests of the family, but will also make the process of property planning easier.

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