Public provident fund
The central government has kept the interest rate of Public Provident Fund (PPF) stable at 7.1% annually for the quarter of July-September 2025. This scheme is especially popular among salary class and safe investment seekers. The maturity of PPF is 15 years, but it also has the facility to take extension for 5-5 years, so that it can be kept operational during the entire job.
Advantage of investment in full 30 years of job
If a person starts a PPF account at the age of 28 and continues investing till the age of 58 years, that is, he can extend this scheme for 5-5 years. In this period, if an investment of Rs 1.5 lakh is made every year, then the total investment is Rs 45 lakh. On this, according to the interest rate of 7.1% annually, the fund increases to about Rs 1.54 crore after 30 years, in which the benefit from interest is more than Rs 1.09 crore.
Benefits related to extension
The biggest advantage of extending PPF is that you can prepare a strong fund until your retirement without any extra risk. Also, this entire amount and interest received from it is tax free. If you stop investing after retiring, you can still extend the scheme for 5 years. During this time, interest will continue to be received on closing balance, and once a year you can withdraw the entire amount of interest.
For example, an annual interest is Rs 10.65 lakh at a fund of Rs 1.50 crore at Rs 7.1%. If we distribute it in 12 months, it becomes a regular tax-free income of about Rs 88,750 per month. PPF is not only a long-term safe investment scheme, but it can also become a strong financial backup for your retirement. If you start investing at the right time and take advantage of the extension, then this scheme can make you a millionaire without risk. This is the reason that financial experts also recommend to include it in the portfolio of every employed person.