PPF or Public Provident Fund is a small savings scheme for salaried employees to invest in voluntarily. It has a lock-in period of 15 years during which you are going to receive an annual interest amount. This scheme has a lot of perks which also include exemptions and tax benefits. But what are the options you have once your PPF account gets matured?
Options PPF Account Holders Have After Maturity
As per the latest PPF rules, an account holder has three choices as an alternative for a PPF account when it matures.
Closing PPF Account
As per PPF scheme rules, an account holder can choose to close this PPF account after the maturity period. He or she can withdraw all the accumulated funds including the initially invested amount along with interest. The maturity period of the PPF scheme is 15 years.
Continuing PPF Scheme Without New Deposits
The account holders of the PPF scheme can choose to continue their PPF account even after maturity without making any new deposits. The account will continue to earn interest rate at the same application rate and you will not have to make any new contributions.
Extending Your PPF Account With New Deposits
Apart from these two options, an account holder can also choose to extend the investment period of PPF even after maturity with fresh deposits. The extension period will be of 5 years during which the funds will be locked in again. “In extended accounts with deposits, 1 withdrawal can be taken in each FY subject to a maximum limit of 60 per cent of balance credit at the time of maturity in the block of 5 years.”
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Interest Rates on Small Savings Scheme
“The Modi government on March 31 announced an increase in the interest rates on most small saving schemes for the FY24 April-June quarter. The interest rates for small savings schemes have been hiked up to 70 basis points or 0.7 per cent, with the maximum hike for NSC. The PPF interest rate has, however, been kept the same at 7.1 per cent.PPF Account: Public Provident Fund account maturity nearing? What’s next? All you need to know.”
