How To Extend Your PPF Account Without Investing?

The Public Provident Fund (PPF) is a long-term investment option with a lock-in period of 15 years. The interest on PPF deposits is increased every year and the interest rate is fixed by the Government every year. PPF EEE (Exempt-Except-Exempt) offers tax benefits, i.e. PPF investment, interest earned on PPF investment and PPF maturity income are exempt from tax.

How To Extend PPF Account Without Investing?

PPF account holders can extend their account for no more than 5 years within 1 year of maturity. But at the same time the account will continue to earn interest. However, if the account holder does not apply for an extension within one year of the expiration date, the account cannot be extended later. If you choose this option, you will be allowed to withdraw the amount each financial year. Owners do not have to inform the post office by submitting the form extension form.

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How to make an investment and extend the term of the account?

Account holders should submit Form H to the post office or to the bank holding their PPF account to extend your PPF account with further investment. Account holders should submit the application within 1 year from the date of expiration. If you do not select this option within one year of maturity, you will not receive interest on post-maturity contributions. Moreover, they are not eligible for tax deduction. If you opt for an extension with more contributions, it is mandatory to deposit a minimum of Rs 500 per year to keep the account active.

Long-term investment

Account holders will be allowed to withdraw more than 60% of the balance amount during the extension period. PPF is one of the safest long-term investment tools. You need to extend your PPF account if you want your savings to grow and earn interest.

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