PPF (Public Provident Fund) is one of the safest long-term investment plans in India, offering tax-free returns, attractive interest rates, and government-backed security. It is ideal for salaried employees, self-employed individuals, and business owners who want to save for the future while also enjoying tax benefits.
The biggest advantage of PPF is that it ensures capital protection with steady growth, making it an excellent choice for retirement planning or wealth creation. However, very few people know about the 15+5 formula, which can significantly boost your returns.
A PPF account has an initial lock-in period of 15 years. Once this period is over, you have two options:
What does 15+5 mean?
After the initial 15 years, you can extend your PPF account for another 5 years. During this extended period, your existing funds continue to earn interest, even if you don’t make further deposits. This allows your total balance to grow significantly over time.
Let’s assume you invest the maximum annual limit of ₹1.5 lakh in your PPF account. Here’s how your money grows:
Now, if your PPF balance reaches ₹1 crore and you earn 7% interest per year, that’s:
Even if you withdraw ₹40,000 per month, your principal remains untouched, and the remaining balance continues to earn interest.
✅ Tax-Free Earnings – PPF falls under the EEE (Exempt-Exempt-Exempt) category, meaning your investment, interest earned, and withdrawals are all tax-free.
✅ Risk-Free & Government-Backed – Since PPF is a government scheme, it comes with zero risk and guaranteed returns.
✅ Long-Term Wealth Creation – Extending your PPF beyond 15 years allows you to accumulate a large corpus for retirement.
If you want to secure your future and earn a steady ₹40,000 per month, then PPF’s 15+5 strategy is worth considering. Instead of withdrawing your funds after 15 years, let your investment grow for another 5 years and enjoy the benefits of compounding interest.
💡 Start investing in PPF today and turn your savings into a stable monthly income for life!
