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New Delhi: A Public Provident Fund (PPF) account opened 15 years ago is a disciplined source of savings towards retirement. In the beginning, a small amount is deposited, but over time it becomes a good fund. When a PPF account matures in 15 years, the biggest question is what to do next. Many people get confused on this aspect. By taking the right decision, the tax free return can continue. At the same time, the wrong decision can also increase problems in the future. Therefore, it is very important to understand the options after maturity.
When a PPF account completes 15 years, it does not close automatically. The account holder has to decide for himself what to do next. There are 3 options available at the moment. First close the account and withdraw all the money. Second, keep the account running without depositing money. The third option is to extend the account in blocks of 5 years and continue investing in it. The effect of each option depends on your needs and age.
If you need the money urgently, you can close the PPF account. For this, an account closure form and a passbook must be submitted to the bank or post office. After this, the full maturity amount is received. This option is perfect for those who have reached retirement or want funds for big needs. Once the account is closed, the interest on it stops being charged.
If you don't want to withdraw money but don't want to invest, you can choose this option. In this, interest is paid on the balance present in the account. There is a facility to withdraw money once in every financial year. This option is good for those who want secure and tax free returns. There is also no risk and some money can be withdrawn if needed.
If you wish, you can extend the PPF account in blocks of 5 years and continue investing. For this, it is necessary to submit the form within one year of maturity. If the form is not provided on time, the account is automatically extended without investment. This option is better for those who are currently employed and want to increase tax free retirement funds.
PPF is a completely tax free scheme. The money deposited in it comes under tax exemption. No tax is levied on interest. The entire amount received on maturity is also tax-free. This is why PPF is considered the safest and most profitable investment. By extending the account with the right planning, this benefit can be obtained for a long time.
The PPF interest rate for the financial year 2025-26 is 7.1 percent per annum. Interest is added on 31st March every year. Interest is calculated on the minimum balance after the 5th of every month. A loan against PPF can be availed only in the initial 5 years. At the same time, a partial withdrawal facility is available after the completion of five years, but it also has a fixed limit.
