The public provident fund (PPF) is a top choice for planning your retirement finances. Launched in 1986. PPF is a government-backed savings scheme with guaranteed tax-exemption on investment, the maturity amount, and the interest earned (aka EEE benefit).
At a fixed interest rate of 7.1% this quarter, PPF is among the safest investment options for retirement and tax planning in India.
How many times can you extend your PPF account after maturity?
Individuals, including minors with their parents’ help, can open a PPF account. You can open one account per person for 15 years. After this term, the account can be extended in blocks of five years indefinitely, with or without added contributions.
Notably, there is no upper limit on the number of times you can extend the tenure of the account as long as you extend it in blocks of five years, as per a Clear Tax report. However, each extension can only be done upon reaching maturity.
At the end of 15 years or the end of block maturity, you have a choice to withdraw the entire amount and close the account or extend it for another five years. Notably, the extension is not automatic, and you need to submit a request to the bank or post office.
What are the PPF rules of withdrawal?
There are three basic kinds of PPF withdrawal rules: Partial withdrawal, premature closure, and withdrawal after maturity. These are explained as follows:
It added that a minimum of ₹500 per missed year of contributions will have to be paid, along with a penalty of ₹50 per inactive year.The bank/post office will process your request and reactivate the account.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.