PPF Interest rate: Public Provident Fund (PPF) is a better investment tool (PPF investment). PPF investment is completely safe. Tax exemption is available. The money received on interest, principal and maturity is also tax free. For long-term planning, the Public Provident Fund (PPF) scheme will be perfect for this.
PPF earns 7.1% interest per annum. The maturity period of PPF account is 15 years. On maturity of PPF account, you have 3 options. Public Provident Fund, the sooner you start, the more benefits you will get. What to do with the account after 15 years of maturity?
1- Withdraw money by closing the account
On maturity of the PPF account, the account can be closed. Withdraw the entire amount (PPF investment). The entire amount received on maturity will be tax free. It will be deposited directly into your bank account. However, for this, you will have to fill a form and give it to your bank or post office.
2- Increase by 5 years with new PPF investment
On maturity of the PPF account, if you do not need the money or if you want to continue it now, then you can extend the account for 5 years. For this, you can make a new investment by depositing a small amount. To extend the PPF account, you have to submit the form one year before the maturity. You can also withdraw money if needed during these 5 years.
3- Grow account, not invest
PPF account is not deactivated after maturity. Meaning the account will remain active and no penalty will be levied on it. If you do not want to withdraw money or do not want to make a new investment, then you can extend your PPF account for 5 years after maturity. You do not need investment for this. Also no paperwork is required. For the next five years, you will continue to get interest on your amount.