The government has not changed the interest rates on small savings schemes for April-June (Q1FY27). That means you will continue to get the same interest as before. If you want to create a smart fund for retirement, then this Public Provident Fund i.e. PPF can be a good option for you. With the 15+5+5 strategy of investing in PPF, you can create a fund of Rs 1.03 crore in 25 years. From the interest received on this amount, a pension of Rs 61 thousand can be made every month. PPF is one of the most trusted and secure investment schemes. Investing in PPF is completely risk free with a guaranteed interest of 7.1%. This interest is compounded every year, that is, you get interest on your money and then interest gets added on that interest as well. This power of compounding is what makes PPF so special. The interest received in this and the amount received on maturity are tax-free. In this scheme you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year. An annual investment of Rs 1.5 lakh will generate Rs 1.03 crore through 15+5+5 formula, Rs 65 lakh from interest… PPF’s 15+5+5 formula is a kind of investment plan, in which you allow your money to grow for 25 years. The basic period of PPF scheme is 15 years. But after completion of 15 years you have 3 options. First: You can withdraw all your money. Second: You can withdraw all your money or take two extensions of 5 years each. You can leave your money without investing in these 10 years. Third: You can continue investing for 5-5 years. After 15 years, get an extension of 5 years each. How will you get a monthly income of Rs 61,000? On completion of 25 years, you can continue the funds of Rs 1.03 crore in your PPF account. You will continue to get interest of 7.1% every year on this amount. Approximately Rs 7.31 lakh will be earned every year at 7.1% annual interest. That means you will get around Rs 60,941 (7.31 lakh ÷ 12) every month. The special thing is that your original fund of Rs 1.03 crore will remain the same. Your regular earning will start. You can invest Rs 1.5 lakh in a year, from investment, interest to maturity tax free. Who can open a PPF account? Any person can open this account in his/her name in any post office or bank. Apart from this, the account can also be opened by any other person on behalf of the minor.
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April 2, 2026