The Public Provident Fund (PPF), one of the most trusted long-term saving options in India, comes with a 15-year lock-in period. However, you can continue your PPF account even after maturity in blocks of five years, and there is no fixed limit on how many times you can extend it.
After your PPF account completes 15 years, you get two choices – you can either withdraw the entire amount and close the account or extend it in 5-year blocks.
The extension is not automatic, if you want to keep investing, you need to submit a request within one year of maturity.
PPF continues to be one of the most efficient long-term fixed income instruments at the current interest rate of 7.1 percent with EEE tax treatment.
PPF can be extended in two ways. First, with contribution, where one can continue to deposit money and earn interest. Second, without contribution, your existing balance keeps earning interest.
Notably, extending PPF account helps one continue earning tax-free interest while keeping your savings safe. It is especially useful for those who want stable returns without taking market risks.
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