PPF Account Maturity: How To Keep Your Public Provident Fund Account Active After 15 Years | Explained

The Public Provident Fund (PPF) remains one of India’s most trusted long-term savings schemes, backed by the government and widely preferred for its safety and tax benefits. It is a popular choice among investors looking to build a secure financial future over time.

PPF comes with a lock-in period of 15 years, after which the account matures. However, maturity doesn’t necessarily mark the end of the investment. One of the key advantages of the scheme is the option to extend the account beyond its initial tenure.

How To Extend Your PPF Account After 15 Years?

Investors can continue their PPF account in blocks of five years, allowing them to keep earning tax-free interest and benefit from compounding. There is no limit on the number of extensions, meaning the account can remain active for as long as the investor chooses, as long as the required rules are followed.

Once the 15-year period is completed, investors have two options, they can either withdraw the full amount and close the account or choose to extend it in five-year blocks. It is important to note that the extension is not automatic, and a request must be submitted within one year of maturity.

PPF accounts can be extended in two ways. Investors can either continue making contributions and earn interest on fresh deposits, or they can opt to extend without making further contributions, allowing the existing balance to keep earning interest.

Partial withdrawals are permitted under both options, although the rules governing them differ slightly.

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Advantages of having a PPF Account

- Tax-Free Interest: Your PPF investment's interest is entirely tax-free. PPF enjoys EEE status (Exempt-Exempt-Exempt). This means your contributions, interest, and withdrawals are tax-free.

- Wealth Creation: A PPF account can assist you in gradually building a sizeable fund with consistent contributions and a long-term commitment. Current interest rate is 7.1 per cent. It is reviewed quarterly by the government.

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Only one PPF account may be held in your name. A minor child may have a separate account, but the total yearly contribution to both accounts cannot be more than Rs 1.5 lakh. It is not permitted to have joint accounts. The PPF is still among the best and safest investment choices for long-term savers despite these limitations.