The Public Provident Fund (PPF) is one of the most secure and tax-free investment options available in India. With a 15-year maturity period, PPF provides attractive interest rates and the benefit of compounding interest, making it a preferred choice for long-term wealth creation.

But did you know that even after maturity, your investment can continue to grow? The PPF scheme offers three options after maturity, ensuring you can keep earning returns without any additional risk.

🔹 3 Options Available on PPF Maturity

1️⃣ Withdraw the Entire Amount

• After 15 years, you can withdraw the full amount (principal + interest) and close your PPF account.
• The entire corpus is tax-free, meaning no tax on withdrawals.
• You also get income tax exemption of up to ₹1.5 lakh per year under Section 80C for the entire investment period.

✔ Best for: Those who need funds for big expenses like house purchase, child’s education, or retirement.

2️⃣ Extend the PPF Account with Fresh Contributions (5-Year Blocks)

• If you don’t want to withdraw, you can extend the account in 5-year blocks.
• You must inform your bank/post office one year before maturity to continue investing.
• You can keep depositing money and earn interest at the current PPF rate (currently 7.1% per annum).
• You can withdraw partially if needed, without restrictions.

✔ Best for: Investors who want long-term tax-free returns and additional wealth creation.

3️⃣ Continue Without New Contributions

• If you do nothing, your PPF account will automatically extend for 5 years.
• You won’t need to invest further, but the interest will keep accumulating on the existing balance.
• This option allows passive earnings, meaning you earn interest on interest without adding new funds.
• You can withdraw anytime during this period.

✔ Best for: Those who don’t want to invest further but want to continue earning tax-free interest.

🔹 Where to Open a PPF Account?

You can open a PPF account at:
✔ Government and private banks (SBI, PNB, ICICI, HDFC, etc.).
✔ Post offices across India.
✔ Minors can also have PPF accounts, but managed by parents until they turn 18.
❌ Hindu Undivided Families (HUFs) cannot open PPF accounts.

🔹 How ₹5000 Monthly Can Become ₹26.63 Lakh?

At the current PPF interest rate of 7.1%, if you invest ₹5,000 per month, here’s how your money will grow:

📈 PPF Calculation at ₹5,000 per month:

✅ After 15 years → ₹16.26 lakh
✅ After 20 years (5-year extension) → ₹26.63 lakh
✅ After 25 years → ₹42.79 lakh

🔹 How does this happen?
The power of compounding (interest-on-interest) ensures that your investment grows exponentially over time. Even if you don’t invest beyond 15 years, your money will keep growing at the prevailing PPF interest rate.

🔹 Why Should You Extend PPF After 15 Years?

✔ Risk-free investment backed by the Government of India.
✔ Tax-free interest & withdrawals.
✔ Better long-term returns compared to FD or savings accounts.
✔ Flexible withdrawal rules after maturity.

💡 Pro Tip: If you don’t need immediate funds after 15 years, consider extending your PPF account for 5 years to maximize tax-free returns.

🔹 Conclusion: Should You Extend or Withdraw PPF?

📌 If you need funds, withdraw the amount tax-free.
📌 If you want higher returns, extend PPF with new investments.
📌 If you want passive earnings, extend PPF without investing further and enjoy interest on interest.

PPF is not just a savings tool—it’s a powerful wealth-building instrument. Whether you continue or withdraw, it remains one of the best long-term investment options for every Indian. 🚀