PPF Account After 15 Years: Should You Withdraw the Money or Continue Investing?

When a Public Provident Fund (PPF) account completes its 15-year maturity period, many investors face a common dilemma: should they withdraw the entire amount or keep the account running? PPF is one of India’s most popular long-term savings schemes, known for its safety, stable returns, and strong tax benefits under the Exempt-Exempt-Exempt (EEE) framework. Understanding the options available after maturity can help you make a decision that aligns with your age, financial goals, and tax planning strategy.

PPF Does Not Close Automatically After Maturity

One important thing to note is that a PPF account does not shut down automatically once it completes 15 years. Instead, investors are given flexibility to choose what works best for them. At the time of maturity, there are three clear options available.

The first option is to withdraw the entire balance and close the account. This is suitable for those who need funds for retirement, major expenses, or wish to reallocate money into other investment avenues.

The second option is to continue the PPF account without making fresh contributions. In this case, the account remains active, and the existing balance continues to earn interest at the prevailing PPF rate. However, no new deposits can be made. This option is useful for investors who do not want to lock in more money but still want to enjoy risk-free, tax-free interest on their existing corpus.

The third option is to extend the PPF account with contributions in blocks of five years. This extension can be done multiple times, allowing investors to keep building a larger tax-free fund over a longer period.

Rules for Extending PPF With Contributions

If you choose to extend your PPF account with fresh contributions, there is an important procedural requirement. You must submit Form H within one year from the date of maturity. This form officially informs the bank or post office that you wish to continue the account with contributions for the next five-year block.

If Form H is not submitted within the specified time, the account is automatically treated as extended without contributions. While you will still earn interest on the existing balance, you will not be allowed to deposit new money until the next extension opportunity is properly exercised.

Which Option Is Best for You?

There is no one-size-fits-all answer to this question. Financial experts suggest that the right choice depends largely on your age and financial needs.

• Younger investors can benefit the most from extending the PPF account with contributions, as it helps create a large, tax-free corpus over time.

• Middle-aged investors who are closer to retirement may prefer extending the account without fresh contributions, allowing the existing balance to grow safely.

• Senior investors or retirees who need liquidity may find it more practical to close the account and withdraw the entire amount.

Tax Benefits on PPF Withdrawals

PPF is considered one of the most tax-efficient investment options in India. It falls under the EEE tax category, which means:

• Contributions are tax-deductible,

• Interest earned is completely tax-free,

• Maturity proceeds are also tax-free.

Investments of up to ₹1.5 lakh per financial year qualify for deduction under Section 80C of the Income Tax Act, though this benefit is available only under the old tax regime. Currently, PPF offers an interest rate of 7.1% per annum, making it an attractive choice for conservative investors.

Loan Facility on PPF

Another lesser-known benefit of PPF is the loan facility. Investors can take a loan against their PPF balance between the third and fifth year from the date of account opening. The maximum loan amount is limited to 25% of the balance at the end of the second year preceding the loan application.

A second loan can be availed only after fully repaying the first one. If the loan is repaid within 36 months, the interest charged is just 1% above the PPF interest rate. If repayment is delayed beyond this period, the interest rate increases significantly.

Partial Withdrawal Before Maturity

PPF also allows partial withdrawals before maturity, subject to certain conditions. Withdrawals can be made after five years from the end of the financial year in which the account was opened. However, only up to 50% of the eligible balance can be withdrawn. This feature provides some liquidity while still encouraging long-term savings.

Final Takeaway

A matured PPF account gives investors flexibility rather than forcing a fixed decision. Whether you withdraw, extend without contribution, or continue investing for another five years depends on your life stage, income stability, and long-term financial goals. For those seeking safe, tax-free growth, PPF continues to remain a reliable option even after its initial 15-year term.