PPF Rules: The Public Provident Fund Scheme is one of the most popular investment schemes in India that caters to the needs of all sections of the society. With a strong interest rate of 7.1 per cent on a quarterly basis and tax benefits of up to Rs 1.5 lakh under Section 80C of Income Tax, investors can invest in the PPF scheme for a period of 15 years. After maturity, account holders have three options to choose from:
1. Withdraw the entire amount: Account holders can withdraw all the money deposited in their PPF account after the completion of the maturity period by filling a form at the bank or post office.
2. Extend investment by 5 years with a new PPF investment: If an account holder wishes to continue investing in the PPF scheme and earn strong returns, they can extend their account for five more years by filling a form and investing.
3. Carry forward existing investments: Account holders who do not wish to make any fresh investments but want to carry forward their existing investments can do so. They will have the option to extend the account for a further 5 years and continue earning interest on the deposited money without investing any additional funds.
In addition to the three post-maturity options, account holders can also enjoy tax-free withdrawals upon maturity. As a result, the PPF scheme is an attractive investment option for all classes of society, whether they are working or not. With increasing popularity, more and more people are investing in this scheme to meet their various financial goals.
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