1. If your PPF account has already matured, it will not earn any interest from the date of maturity.
2. However, if the PPF account is close to maturity, you have the option of extending the account beyond 15 years for blocks of 5 years each.
3. The minimum investment of Rs.500 has to be maintained even after extension.
4. The extended account will continue to earn interest at the rate notified each year, and which will continue to be tax-free.
5. There is no limit prescribed for the number of extensions of 5 years that are allowed for an account.
6. Once the choice is made for a block of 5 years, it cannot be changed.
7. The choice to extend the PPF account with subscription has to be made within 1 year from the maturity of the account.
8. If this is not done, then by default the account is deemed to have been extended without further contribution for a period of 5 years.
9. The benefit of extension is not available to HUFs, and nor to NRIs who opened the account before a change in their residency status.
10. PPF provides partial withdrawal facility, which can be availed of only on completion of 6 years from the end of the year in which initial subscription was made, and the amount that can be withdrawn is 50% of the balance at the end of 4th year preceding the withdrawal, or the year immediately preceding it, whichever is lower, and limited to only one withdrawal in a year (with more flexibility in the extension period).
11. Although you cannot withdraw from the PPF during the first 6 years, you can, however, unlock the liquidity of your PPF account by taking a loan from the 3rd financial year onwards upto 25% of the balance in the account (plus interest) at the end of the 2nd year preceding the financial year, for a maximum of 3 years from the 3rd year to the 6th year, with the second loan, if any, only after the first loan is fully repaid.
12. The loan facility is available only till the 6th year, after which only partial withdrawals are allowed as explained.
13. PPF extension would be suitable if you're a conservative fixed-rate saver with low risk appetite.
14. With a moderate risk appetite, you can invest its proceeds in a Monthly Income Plan fund.
15. With a higher risk appetite, you can even invest in a balanced fund or a multicap fund, or a combination of the two.
16. If you need a Sec 80C tax-planning instrument in lieu of the matured PPF account, you can systematically invest in ELSS funds to the extent required every year.
17. The main objective should be to make your hard-earned money earn inflation-beating returns - which PPF doesn't, while others do.
2. However, if the PPF account is close to maturity, you have the option of extending the account beyond 15 years for blocks of 5 years each.
3. The minimum investment of Rs.500 has to be maintained even after extension.
4. The extended account will continue to earn interest at the rate notified each year, and which will continue to be tax-free.
5. There is no limit prescribed for the number of extensions of 5 years that are allowed for an account.
6. Once the choice is made for a block of 5 years, it cannot be changed.
7. The choice to extend the PPF account with subscription has to be made within 1 year from the maturity of the account.
8. If this is not done, then by default the account is deemed to have been extended without further contribution for a period of 5 years.
9. The benefit of extension is not available to HUFs, and nor to NRIs who opened the account before a change in their residency status.
10. PPF provides partial withdrawal facility, which can be availed of only on completion of 6 years from the end of the year in which initial subscription was made, and the amount that can be withdrawn is 50% of the balance at the end of 4th year preceding the withdrawal, or the year immediately preceding it, whichever is lower, and limited to only one withdrawal in a year (with more flexibility in the extension period).
11. Although you cannot withdraw from the PPF during the first 6 years, you can, however, unlock the liquidity of your PPF account by taking a loan from the 3rd financial year onwards upto 25% of the balance in the account (plus interest) at the end of the 2nd year preceding the financial year, for a maximum of 3 years from the 3rd year to the 6th year, with the second loan, if any, only after the first loan is fully repaid.
12. The loan facility is available only till the 6th year, after which only partial withdrawals are allowed as explained.
13. PPF extension would be suitable if you're a conservative fixed-rate saver with low risk appetite.
14. With a moderate risk appetite, you can invest its proceeds in a Monthly Income Plan fund.
15. With a higher risk appetite, you can even invest in a balanced fund or a multicap fund, or a combination of the two.
16. If you need a Sec 80C tax-planning instrument in lieu of the matured PPF account, you can systematically invest in ELSS funds to the extent required every year.
17. The main objective should be to make your hard-earned money earn inflation-beating returns - which PPF doesn't, while others do.