PPF Account: What will happen if you do not get PPF extension and do not withdraw money after maturity?
Public Provident Fund: PPF is a government scheme that matures in 15 years. By investing in this long-term scheme, investors earn very good profits. In this, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually. Currently, this scheme is getting interest at the rate of 7.1%. In such a situation, the more you invest, the better the profit you will get.
In this EEE category scheme, your tax is saved in three ways. You can save income tax in all three - investment, interest/return, and maturity. All these features make this scheme popular. To continue the benefits of PPF even after maturity, the facility of account extension has been given. But if an investor does not withdraw money from this scheme even after 15 years and neither gets the account extended, then what will happen to his money? Will he get any further interest benefit on the amount deposited in the account in such a case? Know here-
If money is not withdrawn after maturity…
If the investor does not withdraw the maturity amount even after 15 years in the PPF account, then he need not worry. Even in such a case, his money remains safe. In this situation, he keeps getting the benefit of interest from the government on his money. This interest is received according to the calculation of PPF and tax exemption is also applicable.
Not only this, investors can withdraw money from their accounts whenever they want. They can also withdraw all the money and according to their need, they can withdraw some money and keep some in the account and take advantage of the interest rates on it.
Can also extend with a contribution
If you want to take a big advantage of the interest rates of PPF, then you can extend the account any number of times while continuing the contribution to the scheme. But every time your extension will be in blocks of 5 years. Meaning, once you extend it, it will be extended for 5 years directly.
What is the method of extension?
If you want to extend PPF while maintaining contribution, then you will have to give an application to the bank or post office, wherever you have an account. You will have to give this application before the completion of 1 year from the date of maturity and you will have to fill a form for extension. The form will be submitted to the same post office/bank branch where the PPF account has been opened.
