PPF Account Maturity Options: Public Provident Fund ie PPF is very popular among the people. Any Indian citizen can invest in this scheme. In this scheme, the benefit of Compounding Interest is available at the rate of 7.1 percent. This government scheme offering guaranteed returns is very popular. PPF matures in 15 years (PPF Maturity). At the time of maturity, the investor is given three options (PPF Maturity Options). If you have also invested in this scheme, then you must know about it.
First option
After the maturity of PPF, you can withdraw the entire amount including interest and can use it anywhere according to your choice. To transfer the entire amount to your savings account, you have to submit a form to the bank or post office where the PPF account has been opened. Within a few days, your entire money including interest comes into the account.
Second option
If you want, you can continue your contribution in PPF account even further and can extend this account for the next 5 years. For this, you 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 a form will have to be filled for extension. The form will be submitted at the same post office/bank branch where the PPF account has been opened. If you are not able to submit this form in time, you will not be able to contribute to the account. During these 5 years, you can also withdraw money if needed.
Third option
If you want, after 15 years, you can take interest on your deposit even without continuing the investment. For this, it is not necessary to inform the bank or post office. If you do not withdraw the amount after maturity of 15 years, then this option is automatically implemented. You can withdraw any amount of money from this account anytime. If you want, you can also withdraw the entire money. In this, you get the facility of FD and savings account.
Advantages of PPF
You can add a lot of money even by depositing a small amount in PPF account. If you deposit Rs 2000 every month in this scheme, then you will deposit Rs 24,000 annually. In this case, in 15 years, you will deposit Rs.3,60,000 and according to 7.1, you will get Rs.2,90,913 as interest and in 15 years, Rs.6,50,913 will be collected. On the other hand, if you continue investing in this scheme for 5 more years, then you will add Rs 10,65,326.
Apart from this, you also get tax benefits on PPF. This scheme comes under the EEE category, so you get the benefit of tax exemption on the entire investment made in the scheme. Also, no tax has to be paid on the interest received on investment and the total amount of maturity. In this, under section 80C of income tax, tax exemption can be availed on investment up to 1.5 lakhs annually.
