Investing in Public Provident Fund (PPF) is a better and safer option for investors. In this, not only do you get the benefit of tax exemption on investment, but there is no tax to be paid on the interest amount received on investment and maturity amount after 15 years. In such a situation, do you know that you can continue investing in your PPF account even after 15 years. You can extend your PPF account in multiples of five years. That is, after the completion of 15 years, you can continue investing by increasing it for a period of five years.
Information required to be given to the bank or post office
Financial experts say that if you want to continue investing in your PPF account after the maturity period of 15 years, then you will have to inform the bank or post office for this. Wherever your PPF account is located, a Form H has to be filled and submitted. Only after this you will get interest on your investment, otherwise not. If a PPF account holder decides to continue his PPF account for a period of five years with fresh contributions, he can withdraw up to 60% of the account balance at the beginning of each extended period.
Best way to accumulate retirement funds
Financial experts say that PPF is a better long-term investment vehicle. Through this, management of retirement fund can be done easily. If a person deposits Rs 1 lakh annually and gets an average interest rate of 7.5 per cent, then after 15 years he will easily accumulate Rs 31 lakh. At the same rate of interest, he would double that amount in less than 10 years.
