Unlock the Benefits of Public Provident Fund: A 15-Year Investment Plan

New Delhi: Across the country, people prefer to invest in such schemes where there is a facility to withdraw money before maturity if needed. You must be wondering which such scheme it is. This big benefit is available in the Public Provident Fund, i.e. PPF scheme. This scheme is considered very special in terms of long-term investment.

This scheme is also considered very special in retirement planning. On joining the scheme, many facilities are available that attract people. It is also a very good scheme in terms of tax. The maturity amount is tax-free. The government does not impose any kind of tax on it. The most important thing is that the interest is also tax-free.

In how many years does PPF mature?

The Public Provident Fund scheme is considered very special. It matures in 15 years. The interest rate on PPF is reviewed and revised every quarter. Currently, the interest is fixed at 7.1 per cent. The government also supports the scheme.

This is the reason why the amount deposited through investment is safe. Investors can deposit the amount in PPF without any risk. A maximum of Rs. 1.50 lakh can be invested in a financial year. Deduction can also be claimed.

Withdraw the amount before maturity. The

PPF scheme has many specialities which make it very special. The most special thing is that investors can withdraw money from it even after 15 years. There are many conditions for this. Partial withdrawal is allowed from the scheme after 5 years from the date of opening the account. After the fourth year of investment, up to 50% of the balance in the account can be withdrawn.

That means up to Rs. 1.5 lakh can be withdrawn on a deposit of Rs. 3 lakh. Along with this, there is a rule to close the scheme before maturity if money is required for treatment and education. To do this, your account must be 5 years old.

After 5 years of opening the account, it can be closed under special conditions. On closing the account, a penalty of 1% will be levied on the total interest amount. As per the investor’s wish, the scheme can be extended for a further 5 years after maturity.