What to do with PPF account after it completes 15 years (2024)

FAQs

What to do with PPF account after it completes 15 years? ›

If you have a PPF (Public Provident Fund) account and it has completed its lock-in period of 15 years, you have two options: close the account or extend it. Closing the account means withdrawing the entire balance along with the accumulated interest.

A PPF account holder can continue his/her account after maturity without making any further deposits. The account can be continued for any period. The PPF account will continue to earn interest rate applicable to the scheme.

Can I extend the tenure of a Public Provident Fund (PPF) investment beyond the Maturity Period? A customer can extend the tenure of a Public Provident Fund (PPF) investment for a block period of 5 years beyond the maturity period by submitting Form H within one year from the date of maturity.

PPF has lock-in of 15 years

So, if you open a PPF account in April 2023, it will mature in March 2038. After your PPF account matures, you can withdraw the entire corpus or leave the amount by extending the term for as long as you feel feasible, but that can be extended in blocks of 5 years.

If your PPF account has matured but you have not closed it, you will continue to earn interest as long as you keep it. However, further contributions to these accounts will not be allowed. Also, you can either continue earning from your account or close the earlier one to start a new one and invest in the same.

On maturity, you can withdraw the entire corpus. For this, you will have to submit a duly filled Form C at the bank branch or post office where you have your PPF account. The PPF will be terminated thereafter and the corpus will be credited to your bank account. Some banks have also replaced Form C with Form 2.

Duration of Investment (in years): PPF account has a lockin period of 15 years and investors who wish to extend their investment can do so by a block period of five years. Current Interest Rate (%): Time to time, Scripbox updates its calculator with the current PPF interest rates.

For example, if you make annual payments of Rs.1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

How can I extend my PPF account after maturity? ›

A Public Provident Fund or a PPF account has a 15-year lifespan, after which you can either close the account or extend it by five years with or without contributions. The number of extensions is unrestricted. Therefore, you can extend the maturity of your PPF account to 20 years, 25 years, 30 years, and so forth.

When Does Your PPF Account Become Inactive? Your PPF account will be deemed inactive if the required minimum deposit of Rs. 500 is not made each financial year. Therefore, to take full advantage of the benefits of an active PPF account, you must activate it first.

You can also choose to extend your PPF Account with contributions after its maturity by submitting Form H to the bank or Post Office within a year from the date of maturity of the PPF Account.

Can NRIs have a PPF Account? Yes, as an NRI, you can have a PPF Account. However, the account must have been opened when you were still a Resident Indian, i.e., prior to your becoming a Non-Resident Indian.

Thus, the investors have to visit the bank branch with whom they have opened a PPF account. PPF withdrawal online is limited to checking the eligible amount through the net banking facility. However, the investors can download and fill in Form C and submit it at the concerned bank branch or post office.

Features. Investment Limits A minimum of Rs.500.00 subject to a maximum of Rs.1,50,000 per annum may be deposited. Original duration is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.

As a rule, one can fully withdraw the PPF account balance only upon maturity, i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.

PPF Tenure

PPF account matures after the expiry of 15 years from the end of the financial year in which the account was opened. For example, if the PPF account was opened on Jan 1, 2015, it will mature on March 31, 2030, i.e. 15 years from March 31, 2015.

You are allowed to make only 12 transactions in a calendar year, and the maximum amount you can deposit in your PPF account cannot exceed 1.5 Lakh in a year.

The withdrawal amount is capped at 50% of the accumulated corpus in the fund at the end of the fourth year from the date of account opening. The following table illustrates the PPF withdrawal rules with respect to their period, grounds and amount.

Can I extend my PPF account online? ›

Form H is available on the website of your bank or post office. To extend the PPF account tenure, download the submit it to your bank or post office.

A PPF account can be transferred across the country, and the account can be moved across bank branches and post offices.

Discontinued Account

As mentioned before in the article, the minimum amount that needs to be invested in the PPF account is ₹500. If an individual fails to deposit this amount at the end of the year, their account will be discontinued.

To make the withdrawal, you will have to submit the PPF passbook and an application to the bank/ post office. The amount withdrawn is exempt from income tax. This too remains unchanged in the PPF withdrawal rules 2021.

Partial withdrawal facility is available after the completion of 5 financial years from the date the PPF account was opened. You can withdraw up to 50% of the balance that is available after the completion of the fourth financial year. Only one partial withdrawal is allowed in a financial year.

As the rate of interest on PPF is 7.10% which is quarterly reviewed, it allows the person to have certain allocation on Fixed Income investment. After 15 years, a person can extend for a block of 5 years with fresh deposits or without fresh deposits. The extension allows an early withdrawal option but with limits.

PPF has a maturity period of 15 years. However, under certain circ*mstances, one may also choose to withdraw funds from the PPF account before the account matures.

If you miss the PPF account minimum annual deposit requirement of Rs. 500 altogether it will lead to account deactivation. In such cases, you can reactivate the account by paying a penalty of Rs. 50 plus Rs.

After the end of the tenure: The new PPF withdrawal guidelines 2021 maintain the same partial withdrawal rule after 15 years. The 15 years is calculated from the end of the fiscal year in which the initial contribution was made. So, if you contributed on June 15, 2010, the maturity date would be April 1, 2026.