Invest Just Rs 500 Every Year, Grow A Tax-Free Retirement Fund In 15 Years | Savings and Investments News

The Public Provident Fund (PPF) is a secure, government-backed savings scheme with a 15-year lock-in period

For individuals seeking a safe investment with steady returns, the Public Provident Fund (PPF) continues to be a preferred choice across the country. Backed by the Centre, the scheme offers both security and attractive tax benefits, making it a reliable option for long-term savings.

A PPF account can be opened at any post office or bank. Investors can contribute a minimum of Rs 500 and a maximum of Rs 1.5 lakh per year. The scheme comes with a 15-year lock-in period, allowing full withdrawal only upon maturity, although partial withdrawals are permitted after five years. Additionally, account holders can avail of loans against their PPF balance if required.

Currently, the government sets the annual interest rate at 7.1%, which is revised quarterly. The interest earned is completely tax-free, and contributions are eligible for tax deduction under Section 80C, making PPF an EEE (Exempt-Exempt-Exempt) investment, exempt from tax on contributions, interest, and maturity proceeds.

PPF accounts can also be extended in blocks of five years after the initial maturity period, allowing investors to continue benefiting from guaranteed returns and tax exemptions.

Experts highlight several reasons why PPF remains a preferred instrument for millions; it carries a full government guarantee, combines tax benefits with fixed returns, and provides a secure way to build a retirement corpus.

PPF At A Glance

• Minimum deposit: Rs 500 per year
• Maximum deposit: Rs 1.5 lakh per year
• Maturity period: 15 years (extendable)
• Interest rate: 7.1% annually
• Tax benefit: EEE status under Section 80C
• Loan facility: Available

Despite the rise of diverse investment avenues, PPF’s safety, stability, and tax advantages continue to make it a top choice for long-term investors.