Maximize Your PPF: Earn ₹61,000 Monthly Pension from Your Investment
PPF income strategy: How to get ₹61,000 monthly pension from your public provident fund investment? See calculation
Mint
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The Public Provident Fund (PPF) in India allows investors to earn a monthly pension of nearly ₹61,000 by building a corpus of ₹1 crore through disciplined annual contributions. With the current interest rate at 7.1%, consistent investment over 25 years can yield significant returns while keeping the principal intact.
- 01Investing ₹1.5 lakh annually in PPF can help build a corpus of ₹1 crore in 25 years.
- 02The current PPF interest rate is 7.1% per annum.
- 03You can earn a monthly pension of nearly ₹61,000 from the interest on a ₹1 crore corpus.
- 04PPF has a lock-in period of 15 years with options for extensions.
- 05Withdrawals from PPF are limited to once per financial year.
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The Public Provident Fund (PPF) is a popular savings scheme in India, backed by the government, offering tax benefits and a current interest rate of 7.1%. To accumulate a corpus of over ₹1 crore, individuals can invest ₹1.5 lakh annually for 25 years. After this period, even without further contributions, the interest earned can provide a monthly pension of nearly ₹61,000. This strategy involves withdrawing the annual interest at once each financial year, allowing for effective monthly budgeting. The PPF scheme also has a 15-year lock-in period, with the option to extend in five-year blocks. Understanding these rules can help investors maximize their returns while ensuring their principal remains secure.
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This investment strategy allows individuals to secure a steady monthly income post-retirement, enhancing financial security.
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