PPF Account: The Public Provident Fund (PPF) is widely regarded as a secure and tax-exempt investment choice. It’s a small savings initiative by the Government of India that guarantees returns. By adhering to specific guidelines and planning, you can boost your PPF earnings significantly. With the right approach, it can even be transformed into a pension scheme. The best part? There’s no market risk involved.
Once you open a PPF account, your investment is locked in for 15 years until it matures. The most crucial decision you’ll face as an investor comes at maturity, as it affects your retirement planning, tax savings, and fund accessibility. After the 15-year term, you have three options to consider.
1. Account closure
If you decide you no longer want to keep the account, you can close it and withdraw the full balance. To do this, you’ll need to submit a closure form along with your passbook. After that, the PPF account will be officially closed.
2. Continuing the account without making contributions
With this option, you keep your account open without adding any new funds. Your existing balance will still earn tax-free interest at a rate set by the government. Plus, you can make partial withdrawals once a year if needed.
3. Extending contributions every 5 years
You have the option to extend your PPF account in 5-year blocks and keep investing. To do this, you must submit Form 4 (or Form H) within a year of maturity. If you miss the deadline, your account will automatically expire without any further contributions.
You can invest in PPF for 25 years
It’s important to note that while the PPF scheme matures in 15 years, investors can extend it twice for an additional 5 years each time. This means you can potentially invest in PPF for a total of 25 years.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.
Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
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