PPF Scheme: These days, everyone is looking for investments that offer substantial returns without any risk. If you’re looking for such an investment scheme, this news could be valuable for you. If you want a stable source of income beyond your job by the age of 40, the Public Provident Fund (PPF) could be useful. PPF is generally known for its tax savings and safe investment. If you invest with the right plan, it can also provide you with regular income. This requires timely investment and patience.

The maturity period of PPF is 15 years. If you start investing at the age of 25, your account matures by the age of 40. Regular investments during this period give you the opportunity to earn money without investing any money.

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How to Earn Without Contributions

When your PPF account matures after 15 years, you don’t necessarily have to withdraw the entire amount. If you leave the money in the account, it is considered extended without any contribution. This is called PPF Extension Without Contribution. You don’t even have to apply for it.

How Much Fund Will Be Created in 15 Years

A maximum of ₹1.5 lakh can be invested annually in PPF. If you deposit the same amount every year for 15 consecutive years, the total investment will be ₹22.5 lakh. Based on the current interest rate of 7.1 percent, this will earn an interest of approximately ₹18.18 lakh. Thus, the total fund at maturity could be approximately ₹40.68 lakh.

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How Much Extra Income Will You Earn Every Year

If this entire amount remains in the account after maturity, it will generate interest of approximately ₹2.88 lakh per year at the current interest rate. This means you can earn around ₹24,000 per month without making any new investments. This interest will continue to accrue as long as the money remains in the account.

Extension Option with Contribution

If you wish, you can continue to deposit money into the PPF even after maturity. To do this, you need to apply for an extension within one year of the maturity date. In this case, the account is extended in 5-year blocks. You can extend the account in this way for 5-year periods as many times as you wish.