PPF Extension Rules: Learn how and how a PPF account can be extended after maturity. Learn about the two extension options, from the application process to withdrawals.
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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 raises the question: how many times can one extend PPF? How can one obtain a 5-year extension? And what are its rules? If you are also interested in this, this complete information will be useful.
How is PPF Extension Done?
There are two ways to extend PPF after maturity:
Extension with Contribution
If you wish to continue depositing funds into 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 past 15 years. You will continue to receive interest and tax benefits as before.
However, this extension requires a prerequisite: you must submit a written application to the bank or post office for this extension.
Auto-Extension without Contribution
If you do nothing after maturity or withdraw the entire amount, the account automatically goes into Extended Status. The only caveat is that you can withdraw funds only once per year, and in any amount.
However, keep in mind that if you do not make any new deposits and leave the account as is for a year after maturity, you cannot reconvert it to a deposit account. Meaning, once you choose a no-deposit extension, you will not be able to deposit money into it later.
How does PPF grow in 5-year blocks?
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 straight 5-year period. This extension option is available only within one year of maturity. This means that you must request an account extension along with your contributions before maturity. If you fail to request this on time, you will not be able to contribute after maturity.
How many times can you get a PPF extension?
The good news is that there is no limit on PPF extensions. You can extend your PPF account as many times as you wish for 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.
- Submit the PPF Extension Form along with a short application.
- This entire process should be completed within 12 months of maturity.
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