The Public Provident Fund is a savings scheme which was launched by the Government in 1968 as a part of the National Savings Plan. It is also known as a govt investment scheme and is highly beneficial. The contributors of PPF are given yearly interest on the amount in their PPF account.

Let us learn what happens in case a person does not withdraw the amount upon maturity from his PPF account.

Read More: How To Check PPF In Different Modes, All You Need To Know

What Is People’s Provident Fund Or PPF?

People’s Provident Fund more commonly known as PPF is a government investment scheme that helps people contribute and reap its benefits later. Normally, an investment is considered to be mature after 15 years in the PPF Scenario.

Investors earn very good profits by investing in this long-term scheme. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually. Currently, this scheme is getting an interest at the rate of 7.1%.

How Does The PPF Scheme Help In Saving Tax?

The People’s provident fund scheme helps you in saving tax in the following three ways:

• Investment,

• interest/return and

• maturity.

To continue the benefits of PPF even after maturity, the facility of PPF account extension has been provided but in case 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? Let us find out!

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What Happens If Money Is Not Withdrawn From PPF Account On Maturity?

If the investor does not withdraw the maturity amount even after 15 years in the PPF account, 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. Furthermore, tax exemption is also available.

Not only this, investors can withdraw money from their accounts whenever they want. They can also withdraw the entire amount 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.

Extension Of PPF Account

If you want to take big advantage of the interest rates of PPF, then you can extend the account any number of times while continuing the contribution to the govt scheme. However, you can extend this investment scheme for a block of 5 years and not less.

Also Read: How To Check PPF In Different Modes, All You Need To Know

How To Get Your PPF Account Extended?

If you want to extend a PPF Account while maintaining a 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 by filling out a form of extension available at your PPF Account office.

The form needs to be submitted in the same branch as your PPF Account.

Also Read: Make Wise Investment Choices: Learn Today About Premature Closure In PPF Accounts

What Are The Benefits Of Investing In A PPF Account?

Investing in a Public Provident Fund (PPF) account is among the safest options for Indian citizens, offering moderate returns over time. It has the following benefits:

• Consistent Returns: As a government initiative, PPF ensures stable returns with quarterly revised interest rates.

• Tax Advantages: Earnings from PPF are exempt from taxes under the Indian Tax Regime, with additional benefits under Section 80C.

• Investment Security: PPF is a secure investment option, though returns are influenced by market conditions.

• Partial Withdrawals: In emergencies, partial withdrawals are permitted.

• Loan Facility: PPF balances can be used as collateral for loans after a few years.

• Wealth Accumulation: Deposited sums accrue interest, growing into a substantial amount for retirement or other personal uses.

Read More: Accessing Funds with Policy Loans: Understanding IRDAI Changes and Benefits

Conclusion

Hence, it can safely be concluded that to get maximum benefits from your PPF Account or to keep earning profits after maturity, you can get it extended. PPF is a highly beneficial low-risk investment scheme that helps you save money wisely.

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Important Links

Official Website: https://www.nsiindia.gov.in/(S(r4ampj55f1rriw2nvz5qolmu))/Home.aspx

Contact Information: https://www.nsiindia.gov.in/(S(r4ampj55f1rriw2nvz5qolmu))/InternalPage.aspx?Id_Pk=48