Can I extend my PPF Account beyond 15 years?
As per the norms of Public Provident Funds, the tenure of the PPF investment is fifteen years, normally. However, there are provisions under which you can extend the tenure of your PPF contributions and draw more benefits from the most preferred scheme. In fact, if you are a young investor, it is always advisable to extend your PPF tenure.
A lot of subscribers join the scheme when they are in their early or late twenties. When their PPF account matures, they are still in their late thirties or early forties and that is not really the time when they would need a lump sum amount.
Usually, most of the subscribers want a lump sum amount when their children grow up or they have retirement plans or something like that. But in your late thirties and early forties, this is seldom the case. Hence a majority of such PPF subscribers extend their tenure of investment and grow their money at a decent rate of interest.
PPF investment is one of the clever forms of investment in India since it not only grows your money, but also saves a lot of your money, which would otherwise go in the form of income taxes. This is one reason why even younger people opt for schemes like PPF, whether they need it or not. But if they have it, they are certainly saving it for their future or old age.
So, as a matter of fact, you can surely extend the tenure of your investment, even after the maturity of fifteen years. The extension can be done in multiples of 5 years without any maximum limit. For example, you can extend your PPF account for next 5 years after maturity of 15 years, would get your money with 20 years of maturity. You will have to fill PPF Form H and submit in your bank for extension.
If you are extending your investment in PPF account beyond fifteen years, you would get the same rate of interest as long as your money is locked in the scheme. Even the way account is operated would remain the same even after fifteen years.
This rate of interest is quite on the higher side as compared to other small saving schemes. If you are looking forward to investing in PPF, you can save a maximum of Rs 1.5 lakh in your account.