PPF’s maturity period is 15 years old. After completion of the maturity period, the investor has three options for what to do with the PPF account.
Public Provident Fund: Public Provident Fund (PPF) is considered a better investment option over the long term. The reason for the popularization of PPF is the good interest rate, as well as the reason that the money invested in PPF, the interest on it and the amount received on completion of the maturity period are exempt from tax on all three. PPF’s maturity period is 15 years old. After completion of the maturity period, the investor has three options for what to do with the PPF account. Let’s know about them in detail…
Close on account maturity
If you do not want to continue the PPF account after completion of the 15-year maturity period, you can close it. To transfer the PPF maturity amount to your savings account, you have to submit the form to the bank or post office. Original passbook and canceled check have to be submitted along with the signed form.
Can extend account with new contribution
After completion of the 15-year maturity period, the PPF account can be carried forward in blocks of 5–5 years. This can be done any number of times. If you wish, you can extend the account with new contributions for the years ahead. To extend PPF account, you have to fill the form within a year from the date of maturity period.
Extending accounts without new contribution
If you do not withdraw money after PPF maturity or do not choose any other option, then the maturity of PPF account automatically increases. However, in such a situation you cannot contribute more or fresh in the account. With this option, tax free interest on the balance amount comes till the account is closed. Can be withdrawn from a PPF account only once in a financial year. If desired, you can also take PPF maturity extension as desired.
Some other facts related to PPF account
PPF account can be opened by any Indian. It can also be opened in the name of a minor. PPF is a fixed interest rate scheme but the rate varies every quarter. The current interest rate is 7.1 percent per annum. PPF can be deposited with a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. PPF accounts can be opened in post offices and banks.
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