Invest

PPF account maturing? Here's what you should know

What to do when the PPF account matures
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What to do when the PPF account matures
The Public Provident Fund (PPF) is a long-term savings scheme with a 15-year lock-in period. Once it matures, account holders have a few options depending on their financial needs. Here's a breakdown of what you can do when your PPF account reaches maturity.
Withdraw the full amount
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Withdraw the full amount
When the PPF account matures, you can choose to withdraw the entire balance, which includes both the principal and the accumulated interest. This full amount is completely exempt from tax. To initiate the withdrawal, submit Form C along with your PPF passbook and valid KYC documents to your bank or post office.
Extend without contributions
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Extend without contributions
You may choose to extend the PPF account in blocks of five years without making any further contributions. Your existing balance will continue to earn interest at the prevailing PPF rate. You are allowed to make one partial withdrawal each year, subject to the applicable balance limits.
Extend with contributions
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Extend with contributions
If you wish to continue investing, you can extend your PPF account in five-year blocks and keep making fresh contributions. However, you must inform the bank or post office within one year of maturity. To keep the account active, a minimum deposit of Rs.500 per year is required.
Important points to note
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Important points to note
No new contributions can be made after maturity unless Form H is submitted within a year.
If no action is taken, the account is automatically extended for five years, but fresh deposits are not allowed.
Interest earned post-maturity remains tax-free, maintaining the PPF’s appeal as a solid long-term investment option.

(Text: ET Wealth Edition April 7, 2025 - April 13, 2025; Content courtesy Centre for Investment Education and Learning)
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