If you have also invested in PPF scheme and want to continue this scheme even after maturity, then there is no need to be disappointed. You can get PPF account extension any number of times after 5-5 years.
Public Provident Fund (PPF) is considered to be a better investment option because it offers better interest than other schemes. Also, there is the benefit of compounding. The maturity of PPF account is completed in 15 years. But as the rule of investment is that the longer you invest, the greater the benefit of compounding. There are many people who follow this rule, who want to continue this scheme of PPF for more than 15 years so that they can deposit a good amount.
If you have also invested in PPF scheme and want to continue this scheme even after maturity, then there is no need to be disappointed. You can get PPF account extension any number of times after 5-5 years. But for this some conditions have to be fulfilled. Know what you have to do for PPF Extension?
Know the rules of PPF extension
- First condition PPF extension can be done only by citizens residing in India. Indian citizens who have taken citizenship of any other country are not allowed to open PPF account or if an account is already there, then its extension is not allowed.
- For PPF extension, first of all, you have to give an application to the bank or post office, wherever you have an account. You have to submit this application before the completion of 1 year from the date of maturity.
- If the tenure of your PPF account is extended for 5 years on your application, then you will have to deposit at least Rs 500 annually every year. If you do not deposit this minimum amount then your account will be closed. To get it started again, you will have to pay a penalty of Rs 50 per annum.
- After choosing the option of PPF Extension, you can withdraw money from your account only once in a year. The withdrawal amount can be up to 60 percent of the amount you had till the date of maturity.
- If you do not want to deposit any amount in the PPF account after 15 years, but still want to extend this account, then you also get this option. For this you do not have to inform the bank or post office. If you do not withdraw the amount after the maturity of 15 years, then this option is automatically implemented.
- The advantage of this is that whatever amount is deposited in your PPF account, interest continues to accrue on it according to the calculation of PPF and tax exemption is also applicable. Apart from this, you can withdraw any amount of money from this account at any time. If you want, you can also withdraw full money. In this you get the facility of FD and savings account.
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