Half of India is unaware of these 8 most amazing things about investing in PPF. Once you understand them, your lifetime financial worries will disappear!

PPF is considered a safe investment option for everyone, but it is very important to understand all its aspects before investing in PPF. PPF investment done with correct understanding and caution can prove to be helpful in providing financial security in the future. So let's know 8 money making things of PPF investment.

Public Provident Fund (PPF) has always been considered a safe and tax-free investment option. It is a small savings scheme backed by the Government of India, which is one of the most reliable means for wealth creation in the long term. However, just making an investment is not enough. In fact, by following some special planning and rules, you can increase your earnings in PPF to a great extent. Yes, by knowing 8 important things, you can also make your investment journey more successful. So let's know 8 important ways to earn maximum profit from PPF.

Let us tell you that the biggest strength of PPF is compounding. That is, the sooner you start investing, the more time your money will get to grow. By the way, a small investment started at the age of 20-25 can create a much larger corpus than a big investment started at the age of 40-50.

It is believed that it is necessary to invest a right amount in PPF. It is believed that interest in PPF is calculated on the minimum balance from the 5th of every month to the end of the month. Yes, if you deposit money for investment on or before the 5th of the month, then you can get interest on the entire amount of that month.

If you have a lump sum, then depositing the entire ₹ 1.5 lakh in PPF at the beginning of the financial year i.e. before 5 April can be a wise move. By doing this, you can get interest for the whole year i.e. 12 months. Whereas if you deposit ₹ 12,500 every month, then interest will be generated on the deposit amount every month. On the other hand, if you invest the entire amount in April, the interest is calculated on the entire ₹ 1.5 lakh, due to which your return can be slightly higher by the end of the year.

Yes, if you want safe, tax-free and long term returns, then Public Provident Fund is an excellent option. You can invest up to a maximum of ₹ 1.5 lakh every year in it, which is also completely tax free. But if you invest ₹ 1.5 lakh every year for 15 years, then your total investment will be ₹ 22.5 lakh. By the way, according to the current interest rate of 7.1%, you can get more than ₹ 40.68 lakh on maturity.

PPF comes under the Triple-E (Exempt-Exempt-Exempt) category. This means that it provides tax exemption at three levels. Yes, first, you will get tax exemption under section 80C on investment up to ₹ 1.5 lakh every year. Second, the interest received on the investment will be completely tax-free, and third, no tax is to be paid on the entire amount received on maturity of 15 years. This is the reason why PPF is considered more beneficial than options like FD.

PPF is a long term and safe investment scheme whose maturity timing is 15 years. However, in necessary situations, you can make partial withdrawal after 5 years, but doing so may affect the compound interest received on your investment.

After the maturity of PPF, the investor has two options. The first option is that you can close the account by withdrawing the entire amount, while the second and more beneficial option is to extend the account i.e. extend it in blocks of 5-5 years. By continuing to invest, you will continue to get tax-free interest on the deposit amount. Due to which this scheme has the potential to make you a millionaire by making disciplined investments for a long time.

PPF account allows investors to take a loan on their deposit amount between the third and sixth financial year. This facility is available at a low interest rate and can be availed without worrying about any credit score. While from the seventh year you can also make partial withdrawals. (Note: This article is for information only and should not be considered as investment advice in any way, suggest consulting financial advisors for investment)