What Happens To Your PPF Interest After 15 Years If You Stop Deposits? Rules, Interest, And Extensions Without New Deposits
What Happens To A PPF Account After Maturity?
This is a very nice piece of information for all those who are anxious about their PPF accounts and have a lot of questions! The Public Provident Fund (PPF) runs for 15 years, but panic not, on the contrary, it does not cease to function.
Post-maturity, you have two options: the first being to take out the entire sum and celebrate your savings, or the second one is to keep the account active. If you don’t do the necessary and don’t put in any new money, your account will go into passive extension mode, just like your money is quietly growing in the background. The interest will still be added to your account balance, making your nest egg happy and even compounding if you do nothing.
Is The Interest On PPF Taxable?
- Annual Contribution: which is investors can deposit Rs 500 to Rs 1.5 lakh per year into a PPF account.
- Tax Benefit: Contributions are tax-deductible under Section 80C of the Income Tax Act.
- Tax-Free Interest: The interest earned on PPF is completely tax-free.
- Popularity: This makes PPF a preferred choice for long-term savers and tax planners.
How To Extend Your PPF Account?
After the 15-year maturity period, you can extend your PPF account in 5-year blocks in two ways:
Active Extension: Submit the extension form (Form H) and deposit a minimum of Rs 500 per year. Interest will continue to accrue on both your existing balance and new contributions.
Passive Extension: If you choose not to make new deposits, your account automatically enters passive extension mode. So, the existing balance continues to earn interest, and compounding quietly in the background base without any additional contributions.
This ensures your money keeps growing even after the initial 15-year period, giving you flexibility and continued tax-free interest benefits.
PPF Account FAQs: Continuing Deposits After Maturity
- Q1: How can I continue making deposits in my PPF account after 15 years?
A: You need to submit Form H within 1 year of your account’s maturity to extend it and continue contributions. - Q2: How long can I extend my PPF account for?
A: The account can be extended in 5-year blocksallowing you to continue depositing and earn interest on the full balance. - Q3: What happens if I don’t make any deposits after 15 years?
A: Your money continues to grow, earning interest on the existing balance. However, new contributions and loan facilities will be unavailable unless you formally extend the account. - Q4: What is the key takeaway?
A: Even without new deposits, your PPF continues to earn tax-free interest, ensuring your savings keep growing over time.
(With Inputs)
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Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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