You must be aware of the benefits of PPF, but do you know that even if the amount is not withdrawn from PPF after maturity, you still continue to get the benefit of interest rates. Know about this here-
Public Provident Fund: If people who believe in safe investment want to make good money in the long term, then PPF is a great scheme for them. In this scheme, an annual investment of Rs 500 to Rs 1.5 lakh can be made. You can invest in it according to your capacity. PPF matures in 15 years. Currently, this scheme is getting interest at the rate of 7.1%.
Apart from this, this scheme is going to save tax in three ways. In this, you can save income tax in all three – investment, interest/return and maturity. Due to all these features, this scheme is liked a lot. But there is also such information related to this scheme, which you may not know. Know about it here-
Even if you do not withdraw money after maturity, you will still get interest
The PPF scheme matures in 15 years. But if you are unable to withdraw money from this account even after maturity, then do not worry. Even in this situation, your money remains completely safe. Not only this, you also get the benefit of interest from the government on that deposited amount. This interest is given as per the calculation of PPF, while tax exemption also remains applicable.
In this situation, investors can withdraw money from their account whenever they want. If they want, they can withdraw the entire amount and if they want to take advantage of the interest rates in future, they can withdraw some amount as per their need and keep the rest deposited in the account. The benefit of interest rates will continue on the deposited amount.
You can also do extension with contribution
If you want to take a big advantage of the interest rates of PPF and want to create a big corpus from this scheme, then you can extend the account while continuing the contribution in the scheme. You can get this extension done as many times as you want. PPF account extension happens in blocks of 5-5 years. Meaning, if you get extended once, it will be extended for 5 years directly.
What is the method of extension
If you want to extend PPF while maintaining contribution, then you will have to give an application to the bank or post office where you have an account. You will have to give this application before the completion of 1 year from the date of maturity and a form will have to be filled for extension. The form will be submitted in the same post office / bank branch where the PPF account has been opened.
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