To withdraw or increase money? Know the smartest thing to do with your PPF account after 15 years – ..

News India Live, Digital Desk: If anyone is the most reliable partner for investment in a middle class family, it is him. PPF (Public Provident Fund). We all know that in this one has to deposit money for 15 years. But often this question comes in people’s mind that “Brother, 15 years have completed, now what to do with this money? Should we withdraw all the money or extend it further?”

Believe me, this decision is very important because one small mistake can cost you lakhs. Today we will understand in very simple language which three options you have after maturity and which one is best for you.

Way 1: Withdraw all the money and enjoy (Account Closure)

This is the most direct path. If you have completed 15 years and are in dire need of money for your children’s marriage, construction of a house or any major expense, then you can get your account closed.
The entire money (principal + interest) will be credited to your bank account. And the interesting thing is that at this money Not even a single rupee tax will be charged.

Way 2: Extension Without Contribution

Suppose you do not need money right now, but you are also not in a position to invest further. Then this option is for you.
If you do not tell anything to the bank or post office after maturity, your account is automatically extended for 5 years.

• Benefit: You will continue to get interest on your deposited money.
• Facility: You can also withdraw some money once a year as per your need.
• Loss: If you will not be able to deposit new money in it, then you will not get the benefit of tax exemption (80C).

Method 3: Keep saving money and increase your wealth (Extension With Contribution)

This is where the real ‘magic’ happens. People who are smart investors choose this path. You can extend your account for a block of 5 years and continue depositing money in it.

This ‘Power of Compounding’ They say. Imagine, not only will you get interest on the huge amount you have deposited in 15 years, you will also get interest on the new money you invest.

• Condition: For this you have to fill a form in the bank which is ‘Form H’ It is said that a deposit has to be made. And you will have to do this work within 1 year of maturity.
• Benefit: Interest will also be available and tax under section 80C will also be saved.

My Advice

If you do not have a financial emergency, then never close your PPF account. Keep increasing it for 5-5 years. PPF is the only scheme which is ‘safe’ and gives ‘tax-free’ returns. Use it as your old age pension.

So friends, do not take decisions in haste. If you have been patient for 15 years, then take the right step only after thinking for 2 minutes!