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NFC LIC > Finance > PPF Formula: More than half of Indians do not know PPF 15+5 formula, know how you can earn Rs 40,000 per month
Finance

PPF Formula: More than half of Indians do not know PPF 15+5 formula, know how you can earn Rs 40,000 per month

Turn Your PPF into a ₹40,000 Monthly Pension with This Secret Formula!

NAUSHAD AHMAD
Last updated: March 31, 2025 6:31 pm
NAUSHAD AHMAD
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The Hidden Formula of PPF That Most People Don’t Know

PPF Formula: Did you know that the Public Provident Fund (PPF) has a secret formula known as the 15+5 rule? This strategy can help you secure a monthly income of ₹40,000 if used correctly. In this detailed guide, we will explain how you can maximize your PPF investment and turn it into a safe and tax-free passive income source.

Contents
The Hidden Formula of PPF That Most People Don’t KnowWhat is the 15+5 Formula in PPF?How to Get ₹40,000 Monthly Pension with PPF?Step 1: Invest ₹1.5 Lakh AnnuallyStep 2: Extend PPF for 5 More YearsStep 3: Withdraw ₹40,000 Per MonthBenefits of PPF InvestmentHow to Open a PPF Account?Final ThoughtsFAQ’s1. What is the 15+5 formula in PPF?2. Can I withdraw money from my PPF account after 15 years?3. How can I get ₹40,000 monthly from my PPF account?4. Is PPF a risk-free investment?5. Can I open a PPF account online?10%off, especially for you

What is the 15+5 Formula in PPF?

PPF is a government-backed investment scheme that comes with tax benefits and risk-free returns. Here’s how the 15+5 strategy works:

  • PPF has a maturity period of 15 years.
  • After 15 years, you have two options:
    1. Withdraw the full amount and close the account.
    2. Extend the account for 5 years (without making new deposits).
  • By extending your account every 5 years, your corpus continues to grow, and you can earn a stable income.

How to Get ₹40,000 Monthly Pension with PPF?

Step 1: Invest ₹1.5 Lakh Annually

  • To maximize PPF returns, invest ₹1.5 lakh per year (₹12,500 per month) for 15 years.
  • This will amount to a total investment of ₹22.5 lakh over 15 years.

Step 2: Extend PPF for 5 More Years

  • After 15 years, extend your PPF account for another 5 years.
  • No additional investment is required, but your money will continue to earn tax-free interest.
  • Due to the power of compounding, your total corpus will reach close to ₹1 crore after 20 years.

Step 3: Withdraw ₹40,000 Per Month

  • With an average interest rate of 7% per annum, your corpus will generate an annual interest of around ₹7 lakh.
  • You can withdraw ₹40,000 per month while keeping your principal amount intact.

Benefits of PPF Investment

  1. Risk-Free & Secure – Backed by the Government of India.
  2. Tax-Free Returns – Interest earned is completely tax-free under Section 80C.
  3. Emergency Fund Option – Partial withdrawals are allowed after 15 years.
  4. Flexible Extension – You can extend PPF in 5-year blocks without fresh deposits.
  5. Long-Term Wealth Creation – Compounding interest helps in building a retirement corpus.

How to Open a PPF Account?

You can open a PPF account at any bank or post office by following these steps:

  1. Visit your nearest bank/post office.
  2. Fill out the PPF account opening form.
  3. Submit necessary documents:
    • Aadhaar Card
    • PAN Card
    • Recent Passport-size Photograph
  4. Deposit a minimum of ₹500 to activate the account.
  5. Link your account with net banking for online transactions.

Final Thoughts

If you plan wisely, PPF can be your ticket to a secure retirement with a monthly pension of ₹40,000. The 15+5 formula is a game-changer, helping you grow your money without any risk. Start your PPF investment today and ensure a financially stable future!

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FAQ’s

1. What is the 15+5 formula in PPF?

The 15+5 formula allows you to extend your PPF account for 5 years after the 15-year maturity period, enabling tax-free compounding growth.

2. Can I withdraw money from my PPF account after 15 years?

Yes, after 15 years, you can either withdraw the full amount or extend it in 5-year blocks without fresh deposits.

3. How can I get ₹40,000 monthly from my PPF account?

By investing ₹1.5 lakh annually for 15 years and extending your PPF for 5 more years, the interest earned can provide a ₹40,000 monthly withdrawal.

4. Is PPF a risk-free investment?

Yes, PPF is backed by the Government of India, making it a safe and secure long-term investment with guaranteed returns.

5. Can I open a PPF account online?

Yes, you can open a PPF account online via major banks’ net banking services or offline at post offices and banks.

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TAGGED:Best Retirement Planpassive incomePPF BenefitsPPF InvestmentPPF Monthly IncomePPF Pension PlanPPF WithdrawalPublic Provident FundSafe InvestmentTax-Free Investment

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