PPF  Extension Rules: Nowadays, everyone wants to invest in a place where their money is safe and risk-free, while also saving on taxes. Currently, a government scheme is very popular, offering investors safe investments and returns worth crores. We are talking about the PPF scheme, which currently offers an interest rate of 7.1%. The maturity amount is received in 15 years. Many people want to invest beyond 15 years, as the long-term yields higher returns. This raises the question of how many times one can extend a PPF. How can one obtain a 5-year extension? What are the rules for this? Let’s explore this in detail.

How is a PPF extension done?

PPF extensions can be done in two ways.

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Extension with Contribution – If you wish to continue depositing funds into PPF after the 15-year term is over, you must extend your account for another five years. Once you receive an extension, you can continue to deposit the same amount each year and continue to receive the same interest and tax benefits. However, you must submit a written application to your bank or post office requesting an extension. This option is not available without an application.

Auto-Extension without Contribution – If you neither withdraw nor make any new deposits after maturity, your PPF account enters an extended status. In this situation, you can withdraw any amount once a year, but you cannot make any new deposits. Keep in mind that if you do not make any deposits for a year after maturity, your account cannot be converted back to a deposit account. This means that once you choose a non-contribution extension, it will not be possible to deposit funds again.

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How does PPF Extension Work?

PPF extensions are always available in blocks of 5 years. This means that if you wish to continue investing after 15 years, you must apply for a full 5-year extension at one time. This option is only available if you apply to the bank or post office within one year of maturity. If the deadline is reached, contributions will no longer be possible. There is no extension limit for PPF. You can extend it repeatedly in blocks of 5 years as needed.

PPF Extension Process

You must submit a form to the bank or post office where you hold your PPF account. The PPF Extension Form is submitted along with a simple application. This process must be completed within 12 months of maturity so that your account can continue without any problems.