PPF: What to do if the account matures? You have these three options

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PPF: Invest Rs 1,000 every month in PPF and get 18 lakh returns, know how
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Public Provident Fund: Public Provident Fund (PPF) is a better investment option for the long term. Investing in PPF is not only safe, but also offers the full benefit of tax exemption. There is little risk in this for investors. Since investment in PPF is fully protected by the government, it is completely risk free. PPF is one of the most suitable investment options for self-employed professionals and employees not covered by EPFO. Apart from this, people who do not have any organized structure of job or business can choose PPF for long term investment.





Another reason why PPF is a better option for most of the employed people is because the investment in PPF, the interest on it and the amount received on completion of maturity period, all three are completely tax free. PPF matures after 15 years. Now the question arises that what should you do when PPF matures? Let us tell you about three options that you can use when PPF matures.

Close account maturity

Interest is not paid continuously in PPF account, but it keeps adding to your PPF account. When you withdraw money, you get the principal and interest, but there is no tax on this amount. To transfer the amount to your savings account, you will have to submit a form to the bank or post office which will contain details of PPF and savings account. Along with the signed form, the original passbook and canceled check are also to be submitted.

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Can increase account with new contribution

If after PPF maturity, the account is to be extended for further, and to increase with the new contribution, then you have to fill the form. Keep in mind that to do this, you will have to fill the form within a year from the end of the maturity period. After maturity, the PPF account progresses in a block of 5 years. You can extend it any number of times according to yourself.

To continue without new contribution

This option is the default in PPF. If you do not remove it after PPF maturity or do not choose any other option, then your PPF maturity date automatically increases for five years. However, you cannot contribute more in this, but tax-free interest keeps coming on the balance amount. Can withdraw only once in a financial year. If you wish, you can also take PPF Maturity Extension as desired. No paper work is required for this.

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