Top News

PPF Account Extension Rules: PPF, or Public Provident Fund, is the preferred choice for those seeking safe investments and tax savings. Currently, this scheme offers 7.1% interest and matures in 15 years. Many people want to grow their funds not only for 15 years but also beyond, as this scheme offers excellent returns over the long term. This begs the question: how many times can one extend PPF? How can one obtain a 5-year extension? And what are its rules? If you're also interested in this, this information will be useful.

How is PPF Extension Done?

There are two ways to extend PPF after maturity:

If you wish to continue contributing to the account after maturity, you must extend it for a block of 5 years. During this period, you can continue making annual contributions as you have for the previous 15 years. You will continue to receive interest and tax benefits as before.

However, there is a prerequisite for this extension: you must submit a written application to your bank or post office.

Auto-Extension Without Contribution
If you do nothing after maturity or withdraw the entire amount, the account automatically switches to Extended Status. During this period, you can withdraw funds only once per year, and in any amount you wish.

But keep in mind that if you do not make any new deposits for a year after maturity and leave the account as it is, you cannot convert it into a deposit account again. This means that once you choose a non-deposit extension, you will not be able to add funds to it later.

How does PPF grow in blocks of 5 years?
PPF can only be extended for 5 years at a time. This means that if you wish to continue contributing beyond 15 years, the extension will be for a single 5-year period. You only get this extension option within one year of maturity. This means you must request an account extension along with contributions before maturity. If you don't request this on time, you won't be able to contribute after maturity.

How many times can you get a PPF extension?

The good news is that there's no limit on PPF extensions. You can extend them as many times as you want, up to 5 years, depending on your needs.

Required Process for Extension

You must submit a form at the bank or post office where you hold your PPF account.

The PPF Extension Form must be submitted along with a short application.

This entire process must be completed within 12 months of maturity.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.