You have 3 options on PPF account maturity, know when to use it

The maturity date of a PPF account is considered as 15 years from the end of the financial year in which the account was opened. Hence the date of maturity always falls in the month of April.

Public Provident Fund (PPF) is a very popular investment option. The duration of maturity of a PPF account is 15 years. There is a tax rebate on investments of up to Rs 1.5 lakh every financial year.

The amount received on PPF maturity is also tax-free. In such a situation, considering the options available on PPF account, various options should be carefully considered. It may have to suffer from any haste.

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What are the options?
On maturing a PPF account, you have three options:
1. To close the
account 2. To extend
the account in a block of 5 years 3. To continue the account without any new contribution.

When to choose the option to close the account?
If the account holder needs money immediately then he can choose this option. For this, an application has to be submitted to the bank or post office in the prescribed format along with PPF and savings account details. In this, you have to ask to transfer the amount received from the maturity in your savings account. For this, you will need to submit the original passbook and the canceled check along with the form.

When to choose the option to extend the account?
If there is no immediate need for money, then account holders can continue to use PPF as a tax saving tool. For this, you have to apply for extension of account. In a block of five years, you can take the extension whenever you want. The prescribed form for extension has to be filled and submitted to the post office within one year of maturity of the account.

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