Your PPF Account Has Matured: What Are Your Options? | PPF Calculator link | PPF Extension Guidelines
- Close the account and withdraw the entire amount.
- Extend the account without making any new deposits.
- Extend the account with fresh deposits.
- Close the account and withdraw the entire amount.
- Extend the account without further deposits.
- Extend the account with fresh deposits.
- Partial Withdrawals During the Extension Period.
- Without deposits: You can withdraw any amount once every fiscal year and still receive interest on the remaining balance.
- With deposits: You are only allowed one partial withdrawal during the extended period. Total withdrawals within the 5-year block cannot exceed 60% of the credit balance at the start of the extended term.
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The PPF is a popular investment option backed by the government, offering guaranteed interest. Open to all Indian citizens, it’s a long-term investment that matures after 15 years, allowing your money to grow through compounding. Many investors prefer it because it helps build a good savings fund, even though there are other investment options available.
Currently, PPF offers a 7.1% interest rate, which is attractive for people who want to keep their money invested beyond the 15 years. If this sounds like you, it’s important to know the rules for extending your PPF.
Two Extension Options:
When it comes to PPF extensions, you have two choices:
1. Extend with contributions
2. Extend without contributions
Each extension lasts for 5 years, and there’s no limit to how many times you can extend your account.
Extending with Contributions:
If you want to keep adding money to your PPF after the 15-year maturity period, you need to apply at your bank or post office. This must be done within one year of your PPF maturing by filling out an extension form. If you miss this deadline, you won’t be allowed to deposit more into your account.
Extending without Contributions:
If you don’t want to make more deposits but still want to earn interest on your PPF balance, you don’t need to notify the bank or post office. By simply not withdrawing your money after the 15-year period, the extension automatically begins.
The main benefit of this option is that your balance continues to earn interest, and you still get tax benefits. Plus, you can withdraw money whenever you need, giving you flexibility similar to a fixed deposit or savings account.
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