PPF Maturity rules for withdrawing your money

Do you know what are the rules on PPF maturity if you want to withdraw your money ? Do you know that you can extend your PPF account a block of 5 yrs after it’s initial maturity of 15 yrs? A lot of people think that once the PPF maturity is over, they get a licence to withdraw the money at any point of time in what ever way they want, in the case of extension of PPF. Today let me highlight some important points that you should be clear about PPF withdrawal rule in case of extension and show you how to calculate your PPF maturity amount. To start with lets answer what Kailash Chandra asked me sometime back on his PPF

I had opened PPF account on 05/05/1995 and extended for 5 years. Now the balance is Rs.651000/- as on 30/04/2012 and want to withdrawal partly. What amount can I draw please intimate. (link)

Whats the answer?

Its 60% Surprised!… lets move on

Before we move forward, let me clear that Public Provident Fund or PPF is a life time account. One can extend it for next 5 yrs for infinite times, this means you can keep on extending it for another 5 yrs after the maturity is over. That would in a way makes it look like a 5 yrs closed fixed deposit earning you applicable interest rate with tax benefits and without any taxation involved, even having a partial withdrawal benefit :)  That’s one reason why you want to open your PPF account right now even if you don’t need it at the moment, so that the maturity is 15 yrs away from now. See it as a milestone!

PPF Maturity Rules

1. PPF extended without any further contribution

The first situation is when you want to continue your PPF account, but do not want to put any further money in it . In this case all you want to do is just leave your PPF account as it is and let it earn the interest on the account accumulated. Note that if you dont take any action for 1 yr after your PPF matures, this option is default and automatically activates. Note that once its considered as “extended without any further contribution”, then later you cant put any further subscription in it. Now you can only withdraw from the PPF account, but cannot invest any fresh money in it. Note that in this case, you can withdraw any amount from your Public Provident Fund account, there is no limit. You can withdraw 10%, 50% or 90% as there is no limit. The balance amount will keep on earning the interest further. However you can withdraw only once a year, not more than once. (Learn how PPF account interest is calculated)

Interesting Fact : Now as you know this,  can you see an interesting point here, this way PPF can be acting as a great Pension tool, where you can withdraw the interest part yearly once and then utilize it for full year. For example if a PPF account has 1 crore into it, and lets say the interest is 8% (just an example). You can withdraw 5 lacs out of the Public Provident Fund account and the remaining 95 lacs will earn 8% interest, which will be 7.4 lacs. This 7.4 lacs will be added back to 95 lacs and the total next year would be 102.4 lacs. This way one can keep on withdrawing some amount from it and let it grow too.

2. PPF extended with further contribution

In another option, you can choose to invest in your PPF account on regular basis even after extension. But this has to be done within 1 yr of PPF maturity (before the completion of 16 yrs in PPF). Note that in this case, you can only withdraw maximum 60% of your PPF amount in total within the entire 5 yrs block. Each year you can withdraw maximum once.

For example if your Public Provident Fund balance at maturity is Rs 1 crore. Then you can withdraw a total of maximum 60 lacs in entire 5 yr block. You can withdraw 20 lacs in first year, then 10 lacs in 2nd year and then 30 lacs in 4th year. But Once 60% is consumed , you cant touch any money further for the current block. Only when the 5 yrs are completed and new block of 5 yrs start, then your balance will be 40 lacs and then again the same rule applies. However note that at the start of a new 5 yr block, you can choose whether to continue the regular contribution or stop the contribution, like we discussed in point 1.

Important : If at the time of Public Provident Fund maturity , you will have the potential to invest more in your PPF account in coming years, then better invest more and more and only when its time to retire or when you cant contribute more, extend the PPF with “no further subscription” option.

Bank Officials have no idea about PPF Maturity Rules in detail

A lot of banks (SBI) and Post office officials have no idea about PPF rules in such a detail. They will tell you that it can be extended only 2 times and hence insist on closing your PPF account once 2 extensions happen after your PPF maturity. Tell them that you know what are the rules and also teach them.

452 CommentsAdd Comment

  1. Mukesh Kumar SaH

    Hi Manish,
    Thanks for the information!
    You have any information that when post offices will provide online facility for PPF account .

    Thanks,
    Mukesh Kumar Sah

  2. think

    Can you tell me how you accumulate 1 core in the ppf, where you can only deposit 60,000 for 15 yrs where now its 1 lak a year. ?????????

    • SATYA MOHAPATRA

      Earlier it was 60,000 but now-a-days it is upto 1,00,000 which will be taken as tax saving. How ever you can deposit much more than that. Each month u can put as much as you afford.

      • Ratnakar

        I thought any deposit higher than 1,00,000 will NOT earn any interest. Or is the 1,00,000 ceiling only for tax rebate purposes? I am not sure.

        • Surender Singh

          Rebate available u/s 80C is upto 1,00,000/- only. But you can invest as much as you like – maximum 12 times in a year subject to once in a month. And entire amount will earn same interest.

          • C.L.ASWATHANARAYANA

            1) Maximum deposit under the Scheme by an individual in the name of self and / or minor child of whom the depositor is the guardian is Rs. 1,00,000/- p.a. This rule is not applicable to current HUF accounts,which cannot be renewed and new accounts by HUF cannot be opened now.
            2)There is no restriction that only one deposit can be made per month. All the 12 deposits can be made in the same month.
            3) The amount deposited by an individual in excess of Rs. 1,00,000/- will NOT EARN INTEREST
            C.L.ASWATHANARAYANA IFA BANGALORE

        • 1 lac is the highest ceiling in PPF account , if you do invest more than 1 lac it should ideally not be allowed, but even if happens you will not earn any interest on it

          • Yatin Thaggarse

            Great article Manish. Can you also elaborate on options available for NRIs, PIOs etc? Can they continue the plan once they are abroad? What options do they have?

              • Yatin Thaggarse

                Thanks for the info.
                Is it: (a) Without further investment only? (b) Whether NRI/PIO can continue without contribution and continue getting interest indefinitely on previous investments? Or both not possible.

                • Both not possible .. After maturity you need to withdraw it , if you do not withdraw it will not earn the interest . But the thing is this all thing is LEGALLY, If you are in US , how do PPF officials know that you are in US , if you do not do anything then things will get accumulated , but if they get to know that you are NRI at the time of maturity , then they will not give any interest !

          • koguty

            You cannot deposit more than specified limit of PPF for a year – happened with me. PPF limit was 70k, but deposited more through cheque; after a year when getting the passbook updated – lo and behold – 70k credited to account [ the balance was returned as a DD]. So NO, you should not expect any interest on the amount exceeding the ceiling of PPF for that year.

        • PANKAJ PARMAR

          THis is the maximum permissible limit for deposits in a financial year. No further than that amount can be acceptable in PPF, forget earning interest on any deposit of more than Rs 1 L.

      • Deepak R Khemani

        You CANNOT deposit more than 10000/= a year, the computer software dosent allow you that even if the cheque is deposited for clearing the bank will prepare a draft in your name and send it back to you. 100000/= is the maximum that can be deposited in a PPF A/c in a year.

      • PANKAJ PARMAR

        No, one can’t invest more than 1 L in a financial year. If by over-sight excess amount is accepted, then excess amount is to be refunded without any interest on it. Irrespective, how long this “excess” amount has remained in the account.

    • Dominic

      You can actually deposit 1 lakh/year from last financial year. PPF is not for just 15 years, you can extend 5 years multiple time.

    • Phani

      The figure used is an example :), obviously we cannot accumulate 1 crore in 15 years even after contributing 1 lac per year. Any amount more than this contributed per year will not earn interest. If you keep on extending and contributing until the actual time you cant contribute anymore, then the accumulation might reach 1 crore :)

      Regards

  3. BIJAYA KUMAR PRADHAN

    Hi Mr. Manish,
    Can we withdraw 100% after 15 year or not ? what is the eaxact rule of 100% surrender ?

    Regards,
    Bijay

    • SATYA MOHAPATRA

      Yes you can withdraw whole 100% after 15-year maturity provided you do it before 16th year is completed and you have made no contribution in the 16 th year.

        • C.L.ASWATHANARAYANA

          Provided no deposit is made during the 16th year the entire amount or part thereof can be withdrawn any time after the completion of 15 financial years after the financial year in which the account is opened (Ex: A/c opened any day between 01-04-1996 and 31-03-1997 can be closed or continued without further deposits and such (continued) accounts can be continued for life time with ONLY one withdrawal per year till the balance in the account becomes NIL.
          PPF Scheme, 1968 came into existance in the year 1968. I doubt any account with a balance of Rs. 1.00.00.000/-
          I think PPF Scheme,1968 Act and Rules must be available in a website. Any one tried ? -C.L.ASWATHANARAYANA

        • Anand

          There is no restriction in PPF about contribution in 16th year . All we are saying is that if you have not invested anything in PPF in 16th year , in that case what happens – its assumed that you are continuing your PPF without subscription !

        • SATYA MOHAPATRA

          You have contributed in 16th year means you have renewed for next 5year with paying option. Hence u can not withdraw 100%.
          However you can withdraw upto60% within 16th to 20th year.

          • Anand

            Nothing like that. If you have contributed in 16th year, it does NOT mean that you have decided to renew. You can decide what to do with your PPF account on the day of maturity.

            • SATYA MOHAPATRA

              Dear Anand! please go through the below quoted PPF Act clause3A:
              (3A) Continuation of account with deposits after maturity :- Subject to
              the provisions of sub-paragraph (3) a subscriber may, on the expiry of 15 years
              from the end of the year in which the initial subscription was made but before
              then expiry of one year thereafter, may exercise an option with the Accounts
              Office in Form H, or as near thereto as possible, that he would continue to
              subscribe for a further block period of 5 years according to the limits of
              subscription specified in paragraph 3.
              (3B) In the event of a subscriber opting to subscribe for the aforesaid block
              period he shall be eligible to make partial withdrawals not exceeding one every
              year by applying to the Accounts Office in Form C, or as near thereto as
              possible, subject to the condition that the total of the withdrawals, during the 5
              year blcok period , shall not exceed 60 percent of the balance at his credit at the
              commencement of the said period.

    • Yes you can withdraw 100% after maturity , but only within 1 yr from maturity (16th year) , after that you can still withdraw 100% but if you have not deposited anything in 16th year !

  4. Kranti Goyal

    Hi Manish,

    Thanks for great info.

    Problem is with bank/post office employees are ego. They think they are always right and if you want to teach them they will start getting angry.

    One more thing is there any government document regarding PPF rules. So we can also show this documents as proof to bank employees even file RTI.

    Thanks and Regards
    Kranti Goyal

    • ss thind

      it is always advisable now to go to any national bank like pnb or sbi .in a city though not all branches are authorised.sbi is having online facility while in pnb is like good old days you have to get ur passbook updated. banks are better bcos ypu can open a a/c and give satnding instructions to debit from this a/c to ppf a/c.you can always put money in this a/c anywhere .i have been doing this for 10 yrs , once a year or so i call up the branch to chk if the person handling ppf a/c has not changed.banks are more convenient.

    • yes PPF office employees will not confess that they do not know something . but what you can do is that tell them that one of your friend has done otherwise and the bank official accepted it when he showed them PPF rules issued by govt . I feel this way there are chances that they will listen !

  5. Ratnakar

    Hi Manish,

    Very informative article. I did not know about extension with and without further contribution options. This was an eye opener. I also liked your interpretation as “great pension tool”. PPF is quite an effective instrument. This is my 15th year of PPF subscription and will surely extend for 5 yrs with regular contribution. Thanks!

  6. Rajiv Mathur

    Thanks Manish, This indeed is a very useful information. You deserve lot of patting for this. Rajiv Mathur

  7. SATYA MOHAPATRA

    With existing rules one can put money once in a month that means total 12 subscriptions in a year. How much one can put in a year? Is it 1,00,000(one lakh) or more?

  8. Nikunj Bhatt

    Thank you, Manish.

    This is a very useful input for all PPF Investors who, (like me) are on the verge of completing the 15 years lock-in.

    The info on endless continuation of this account is extremely useful too and I am sure many of us were ignorant about it, do far. The withdrawal rules too, are very informative.

    Thank you, once again.

    I have a question on Income tax that I seek an answer to, from you. How should I go about it? Pl let me know at me E mail add above.
    Thank you,
    Sincerely,
    NKB

  9. BIJAYA KUMAR PRADHAN

    Earlier it was 70,000 but now-a-days it is upto 1,00,000 which will be taken as tax saving. Each month u can put Maximum upto 1,00,000 in 12 instal.

  10. BIJAYA KUMAR PRADHAN

    Dear Mr. Manish,
    I am having two home loan, both are more 1.5 lacs per Annum. How i will save these in tax claim. What is the exact procedure for taking the maximum tax benefit.

    Thanks.
    Bijay

  11. BIJAYA KUMAR PRADHAN

    Dear Mr. Manish,
    I am having two home loan, both are more 1.5 lacs per Annum. How i will save these in tax claim ?What is the exact procedure for taking the maximum tax benefit.

    Thanks.
    Bijay

  12. BIJAYA KUMAR PRADHAN

    yaa cumm. of both interest is more than 3.0 lacs….,
    plz advise how i will save ??

    THanks.
    Bijay

  13. Anand

    Good article… but a couple of things.

    First of all, it’s not possible to accumulate 1 crore in 15 years in PPF. It would be prudent to assume a realistic value.

    Also, there is no mention of form-H, which needs to be submitted if one wants to continue PPF account with contribution.

  14. Abhishek

    Nice Article!

    The last line is hilarious! Does anybody has the guts to teach the SBI babus a thing or two about PPF. I don’t think so. :-)

    When does the PPF matures? I’ve heard that the time calculation starts from the end of FY in which first investment is made. In effect, after 16 years, if the first investment is made in April. So, after 16th yr and before 17th yr, the extension decision is to be made. Correct me if I am wrong.

    • Yes Abhishek you are correct . Its always 15 yrs from the end of the financial year from when you started . Like if you opened it on 19th Sept 1990 . You have invested in the year 1990-1991 . Now end of 1991 financial year , which is Mar 31st 1991 will be taken as starting date , and it will be 15 yrs from that date , that is Mar 31st 2006 as maturity date

      • Sagar Pawar

        In the above case, If I want to continue my PPF account with contribution, should I fill the form H and next installment after March 31st 2006 or between (1-Apr-2005 to 31-March-2006)

  15. Sunil

    Bank officials don’t even know that, it can be extended without subscription. At one of the PSU banks I was told that, such option does not exist.

      • Sunil

        Hi Manish,
        I see a potential business opportunity there! :-)
        But, let me share with you, my experience with ICICI Bank in this regards was pleasant. I just wrote to customer care, “why can’t I open PPF account at any of the branches of ICICI Bank? With the advent of Core Banking Solutions, customers should be allowed online PPF account”. I got a reply stating that, “presently ppf account can be opened only @ main branch”. Within a month I saw a link on ICICI Bank net banking portal for “online PPF account” with words “new” flashing next to it! :-)
        They are really lending their ears to customer grievances and complaints. Way to go!

          • Sunil

            If its online, branch doesn’t matter as such except for one time account opening. All the hassels of subsequent visits for deposit and passbook updates are done away with.

            • Phani Kiran

              Ha ha, everything we want to do online only :).
              As i am aware, still it is not possible to open at any ICICI bank. The online link is just to input details and take some printout and visit the specific ICICI branch with all documents. PPF is part of Government scheme and therefore only branches where ‘Treasury’ operations are performed accept them – Not all the branches.

  16. dr nilesh

    really nice article,
    manish you are really a guru for new learners like us,
    we have learned so many things from this blog and now we are spreading this awareness to all my friends and relatives,
    for them i became the only source person of all these knowledge,but they dont know u r my guru in this finance knowledge world.
    a small doubt,
    can we open 2 account for self and kid and invest 1 lakh each in 2 account.

  17. Raman K S

    Excellent piece of information; in day-to-day matters. Grateful thanks to you.

    One clarification needed is about date of deposit. Would like to know if interest is payable by the Bank from the date of deposit of cheque or after realisation of cheque. Kindly guide me.

    • C.L.ASWATHANARAYANA

      Earlier the day a local cheque was deposited in the office it was deemed to be credited and such deposits were earning interest from the month of deposit if the deposits/ cheques were made/presented on or before 5th of the month. At present the date of realisation of the cheque is deemed to be the date of deposit.
      C.L.ASWATHANARAYANA IFA BANGALORE

  18. nachiket

    Thanks for this wonderful information Manish.

    I have one question, if I open an account for myself and also open another account in the name of my kid, I know that I will be able to get tax deduction from each years IT return for the amount that I invest in my account. However will there be any tax at the maturity for the account that I opened in my kids name?

    • Yes Nachiket

      You can get the tax deduction from your kid PPF account also , but the total deduction in a year can be total of 1 lac only , like if you invest 50k in yours and 70k in your kid account , then total 1 lac you can claim

  19. shankar

    hi,

    One thing..try to deposit the 1 lac limit for the financial year..as early as possible..to get max benefit of compounding interest and also because interest calculated on minimum balance available after 5th for a month..

    So, ideally if we deposit 1 lac before 5th of april….thats best possible way

    shankar

  20. ALAGAPPAN S

    A PERSON HAS OPENED A PPF ACCOUNT AND COMPLETED 15 YEARS. BUT HE HAS NOT REMITTED ANY MONEY FOR THE LAST 5 YEARS. AFTER 15 YEARS HE COMES FOR CLOSING THE PPF ACCOUNT. WHETHER PENALTY FOR NOT REMITTING FOR THE LAST 5 YEARS IS TO BE RECOVERED FROM HIM OR NOT

  21. Mansoor

    Great point, Thanks for emphasizing the importance of having a PPF account. Everyone’s debt portfolio should have this instrument.

  22. Vivek, Hyderabad

    PPF is one such great Safe-haven Financial Product I have ever seen. But, of late, the only thing I regret about PPF is Interest Rates. I have seen the peak levels of 12% Interest on PPF. From thereon, the interest has been on a downward spiral touching rock-bottom lows of 8%. Its a Shame that Returns on a “National Financial Product” is so abysmal. Its all because of our Greedy and incompetent politicians. The PPF acts as a “Cheap Fund Reserve” for our Govt. to use for their Schemes or other clandestine activities. I wish the Interest rates on PPF at not below 10%, given that its a National Financial Product with huge lock-in period (as long as average home loan tenure).

    • Vivek

      I am not sure how correct it is to say that the return of PPF should be above 10% just because its a national product ? What is the basis for that ? What was the FD rates at that time ? what was the inflation that time ?

      • Vivek

        What is the Basis for that? Being a Govt. initiated National Product, it should atleast beat Inflation. Because of high inflation, Purchasing Power has come down.

        Banks can certainly not offer the 10% kind of returns.

        But some Real Returns in terms of Inflation can be insisted from Govt.

        Besides, the long lock-in period itself should allow 1% higher rate than card/rack rate, because higher tenure means low asset liability management for the Govt.

        • Vivek

          Thats the issue .. how do govt track inflation on so frequent basis ? FD rates are generally anyways near inflation .. better than PPF , I think FD are inflation linked !

  23. A V Gosavi

    Dear Manish,
    You are indeed great! You have enlightened my understanding about PPF. I am happy that I continued after 15 years and have been contributing regularly. But your article has gave me great support that my decision has been, only not only correct, but a greatest boon for me as Retired Tax payer and also investor!.
    Many many thanks for your yeoman job!

  24. koguty

    A couple of questions –

    What happens if I do not contribute to PPF for 1 year [not even the minimum contribution] – will there be any problems at withdrawal/maturity/extension?

    Can we move our PPF from SBI to ICICI?

    • If you do not make the payment (even minimum) for some year .. your PPF account will get into suspended mode , then you need to again renew it by paying Rs 50 per year penalty and contribution for all the years you have not paid (500 per year) , but I am not sure if you will get interest for those months when it was not active !

      • koguty

        Interest got credited to my account for the “inactive” year.
        How do I know if it is inactive/suspended mode? I am able to deposit in it, interest is credited?
        Will this inactivity/suspension come into picture while maturity/withdrawal?

        I am hoping nothing fishy is awaiting me for this 1 miss later down the line :(.

        • hmm.. in that case may be i was wrong that you do not get interest for inactive year .. note that inactive means a financial year here from Apr 1 2011 to Mar 31 2012 , like that ..

  25. Sumeet Gupta

    Excellent information Manish. My query to you, i already have a PPF account in my local post office. Though i believe the answer is No, can i get this PPF transferred to SBI or may be ICICI, now that they have started providing it?

    • Obviously YES :) .. why do you think the answer is no , PPF accounts are portable , the only issue is you need to put some time and effort on this .. enquire in ICICI how to do that .. they will help you

  26. Deepa

    HI Manish,

    Till the time I read this article I was under the impression that PPF account can be extended only twice . Also as mentioned by you, a PPF investment as a pension tool has given a new insight to me.
    Just a query can a PPF account be transferred to another branch of same bank in a different city?

  27. OMG!! You have just opened my eyes. What an analysis. I just realized the power of PPF. I have decided to use my PPF account as my pension plan. I have started a ppf account recently. Last year I have deposited 20000/- . This year I am planning to contribute 30k to it. My age is 28. Can I g et Rs 1 cr by 50-55 yr?
    How much I have to invest in ppf for that yearly, can u pls suggest if you have time.

    • Venkataraman Ramamoorthy

      Hi Mandipa,

      If you invest 50,000/- in PPF for the next 35 years, You would have accumulated a total amount of more than 1 crore (ROI – 9%). But if you invest 100,000/- for the next 27 years, you would also accumulated the same amount.

      Just wanted to share….

        • Manidipa

          You need 19% on yearly basis to get 1 crore from 1 time investment of 1 lac over 27 yrs .. its very tough actually .. From mutual funds you can expect 15% with lot of optimism .. so I would say you really cant generate 1 crore from 1 lac in 27 yrs in real life assuming consistency in returns from various products

          • Thanks Manish.

            Anyway I am now trying to finish my homeloan asap. For that I am trying to accumulate max cash to repay. I did some calculation, based on that I found repaying homeloan is far better than any savings, till my home loan is finished. Kindly let me know your views on that also.

  28. Parag Rodrigues

    Hi Manish,

    Undoubtedly, this article has been an Eye-opener for me. I hjeld PPOF account for past 4 years but my investment to PPF was quite minimal.

    I was under wrong belief that PPF account can be held for max 20 yrs ( 5 yrs exteneded only once after your maturity). But things are now VERY MUCH CLEAR.

    We can opt to extend fo another 5 yrs based on the options (with / without further subscription.

    Could you please assist to know if we need to explicitly define in some form to conifrm the relevant option.

    THANKS A TON FOR SUCH FANTASTIC ARTICLE. …

    3 Cheers to you….. :-)

  29. Veeraf

    Manish,
    Could you please write some articles on NPS also, I am stuck with an NPS account which has been made inactive because of careless nature of bank employees of Kotak bank. They did not deposit the check in time and now my account has been made inactive. When I ask Kotak bank they tell me that there are no rules for making the NPS card active again. We have to wait untill new rules come out.
    Please advise path forward.

    Best regards,
    Veeraf.

  30. RAVI VERENKAR

    Hi Manish,
    Excellent article. PPF as a long term investment vehicle is still not understood by many. Creating awareness about it is a must. Congrats to you for all that.
    I have a question for you on PPF: How much maximum contribution can one make in a year for a family of 04 people (husband, wife & two minor children)? Is it Rs. 4 lakhs altogether with a contribution of Rs. 1 lakh in each individual account OR a total of Rs. 2 lakhs distributed amongst the four of them.
    I have seen people contributing the maximum even in their minor children’s PPF accounts apart from their own accounts.
    Is it legally right. Please throw some light on it? Thanks a ton for all your valuable articles.
    Regards,
    Ravi.

  31. Ritesh Kumar Singh

    Hi Manish,

    This article came as quite a surprise about the 60% limit !

    can you please advice the source of this information ? I had made PPF investment with my first year job and the only investment of which I am proud of which was made forcefully by an elder in family. I have also completed almost 50% tenure so only 50% lock in period is left !

    Thanks,
    ritesh

  32. Dinesh

    Thanks Manish..
    I feel more enlightened with this article …
    i will definitely share this with my friends..

    regards

    dinesh saboo

  33. Madhava ram

    Thanks Manish for sharing this.

    But the examples which were shown above as saying 1 crore, I don’t think we can make 1 crore balance in PPF as the limit is per year 1 Lakh. In case if I am wrong, please give an example how our money can grow to a crore.

    Thanks
    Madhava ram

  34. Praveen K

    Thanks manish, that was very informative. appreciate the time you spend to write these articles. thank you.

    Praveen K.

  35. Ajay

    Hi Manish,

    This is a really informative article.

    My recent experience with PPF A/c.

    When I went to deposit the cheque of a Pvt bank to the PPF a/c in a Nationalized bank – I was informed that for PPF we cannot accept the cheques for other banks, rather you should have the account with our bank – this was not the case till last year.
    Then they said if you don’t a A/c with our Bank – either open a new account with us OR you need to deposit cash – so I withdrew cash from my Pvt. bank a/c and then deposited the cash in the Nationalized bank branch of my PPF A/c.

    Any idea if there are any such changes in the rules.

    Regards
    Ajay

  36. Manish Varshney

    Hi Manish,

    Thanks for the Article on the PPF A/C Extension.
    Can u plz elaborate the 100% withdraw conditions after Maturity With Extension and Without Extension.

    Regards,
    Manish

  37. VIJAY

    Nice article
    I have read following article one of the leading english newspaper few months back

    “Procedure for post-maturity continuation of an
    account
    There are a couple of formalities to comply with
    for declaring your intentions regarding post maturity
    continuance.
    You will need to submit Form-H to declare your intention
    of continuing the account with subscription
    for each extended period. It should be filed before the
    first contribution is made for the first year of extension.
    Else, the account will be treated as without-subscription
    extension.
    Fresh contributions made to such accounts will
    enjoy neither the deduction under Section 80C nor
    the interest. [MoF (DEA) 7/21/88-NS-II dated August
    10, 1990]”

    My question is
    1) is this true?
    2) if yes ,then if fresh contibustion made in extened pff account is neither going to enjoy deduction under 80 c nor the interest ,then what is the use of putting further contribution
    I tried to get the ansure form SBI & CBI bank , but nobody gave me proper answer
    please davise,

  38. vinod

    Hi Manish, just following the PPF thread here, very informative.
    i came across this website- link-http://www.investmentkit.com/government/ppf.shtml

    here it says that a nri can open a ppf account. pls give your inputs on this.
    i am not a NRI but just work overseas and get my salary in dollars. in NRE account.
    can i open a ppf account?
    pls advice
    thanks
    vinod

    • Vinod

      PPF accounts can not be opened by NRI’s , they can just invest in their already opened PPF account. I dont think the information on the link given by you is correct !

      I am not clear about your status , when you work overseas and get your salary in your NRE account in dollars , then how are you not NRI , are you saying that you are in india physically ? If that is the case then your income is taxable in India .

  39. Saurav Bagchi

    Hi Manish,

    Suppose I want to invest 1 Lakh in PPF per year. If I make this invested within first three months of a financial year(April, May, June) or within last three months of a financial year(Jan, Feb, March).. will the interest earned for that financial year will be same in either cases?

    I have heard that the PPF investment needs to be done before 5th working Day of a month so that the interest for that month is calculated/taken into account.

  40. S.Prakash

    Dear Manish,

    Thanks for the very informative article. I think this is an A-Z article on PPF. I have a ppf account in SBI. Whether I can open a PPF a/c in my wife’s name and contribute to it.

  41. Subh

    Hi manish,

    Could you please let me know the following
    1) if the matured amount from PPF is tax free as the the matured amount from FD isn’t.
    2) which one would be the best to open a PPF a/c, SBI/PO?

    Thanks
    Subh

  42. Shubh

    Hi manish,

    Need your help. I have opened a PPF a/c with SBI and i have the online banking facility for Axis bank and i have the facility for the other bank power transfer also in Axis bank. So from Axis bank online banking i can transfer amount to any other bank a/c but not sure if i can transfer amount to the SBI PPF a/c.
    Till date i had transferred into saving and salary account through the online banking.
    Please let me know if i can transfer amount from axis bank online banking to SBI PPF a/c

    Regards
    Shubh

  43. Surendra

    Hi Manish,
    I have one question and i didn’t get answer from google. Hope you could help me.
    Question:
    On maturity of PPF account do i need to visit the same branch or Post office for withdrawing the amount? or we can withdraw the amount from any branch?

    I mean same branch means the branch that we opened the PPF account.

    Ex:- Opened my PPF account at ICICI bank, Pune, Bund graden branch do i will be eligible to withdrawn maturity amount from any ICICI bank branches accross India or i need to visit ICICI bank, Pune, Bund graden branch?

    Thanks In Advance,
    Surendra.

    • As of now what i know with SBI is that you can withdraw it from same branch , but it might be a SBI issue , with ICICI it might not be the case, but you can apply for withdrawal and the money can be transferred to your account, you dont need to be present there !

      • Surendra

        Thank you Manish for the reply.

        This is very good site for financial matters and information. And also we can except quick reply on same day itself by experts. :)

      • jains

        Fundamentally you need to deposit physical passbook (SBI) so in person visit is needed. In case ICICI is not providing physical passbooks, there is a possibility of exemption from visit to home branch — but I have my doubts

  44. Santosh

    Dear All

    What happens if I do not deposit PPF amount for 1 year due to financial problem [not even the minimum contribution] – will there be any problems at withdrawal/maturity/extension?

    Can I deposit 2 years contribution in coming year

  45. Pratik

    Hi Manish,

    I have a question regarding the PPF account.

    what should i do if my PPF account is matured , let say 15 years are over and the 16th year is going on with outstanding amount as say 15 lakhs. now i dont want to make contribution to this account as i am expecting to withdraw this entire amount (15 lakhs) in another 1-2 years. Also i have current income which i want to pump into PPF in say Rs 1 lakh every year. but i make contibution to this account it would get extended for another 5 yr and i would only be eligible to withdraw upto 60% ( 9 lakhs). to tackle this

    can i open another PPF account in my name wherein i can make fresh contribution with a lock in period of 15yrs? and still maintain my previous account without any fresh contribution but let it earn interest?

    I have option to move 15 lakhs to an FD but it would attract income tax which i am trying to avoid

    • You cant open two PPF account in parallel , If you are so sure that you would like to withdraw your money in next 1-2 yrs , in that case just withdraw from PPF , and put the money in bank account. Or choose to not put any more money in next 5 yrs and let it continue without contribution . keep your 1 lac per year in a FD for next 5 yrs, this way your money will also be invested (not in ppf, but atleast in FD) and you will have the freedom to choose to withdraw from PPF fully anytime you want.

      Moving your PPF amount to FD will not attract income tax, the income which is earned by FD ,that would be taxable , but thats the only way you can acheive this.

      Manish

  46. shailesh

    hi Maneesh,
    please clerify on following
    1) can i start PPF for my 4 year old son and 2 year old daughter separtely
    2)what if i will pay Rs.1L for coming 5yeras only for them and after i stop paying what will be an impact by end of 15 th year or is it allowed or viable
    3)can i start PPF account for my wife though she is dependent
    4)what if i will invest Rs.1L per annum only on my name for coming 15 years what will be cummulated amount with an intrest
    thnx

  47. Raj

    Hi,

    First of all, a big Thank you as you have saved me from standing in a long queue in SBI to get the same information , and perhaps inaccurate as you had also said, about the PPF maturity and it’s continuation.
    However I still have question and hope you will reply to me :)

    After the maturity at the end of 15 years, shall I have to put an application to request for an extension of an another 5 years or will it get extended automatically?
    Thanks,
    -Raj.

  48. Kirpal

    Hi,

    I had a PPF account, which finished 15 years in 1983, and i extended by a block of 5 years as per bank instruction, and then i closed the account in 1988.

    since then, i have not had any ppf account in my own name. my daughters who were minors have become majors so their accounts are now in their names.

    can i open my own ppf account?

    is it possible to open an account after it has matured and also been closed already?

    Request you to please advise me

    Thanking you in advance,

    Kirpal

  49. DR JAYESH

    Dear Sir, PPF account was not renewed after maturity in 2006! However money is deposited and interest paid till year! Bank does not have a clue what to do in this situation! can you guide me.

    Regards

    Dr Jayesh

  50. Karthik

    hi manish, gd mrng.
    i have a NRI account opened when i was in dubai before 5 yrs, later i went back to india to work. i worked in india for last 2 yrs. now again i came back to abroad for 6 weeks work and 2 weeks off rotation job, i’ll come to india. but still i’ll consider as NRI i think. my family is in india only.
    1. is it possible for me to open a PPF account in my name?
    2. If not possible, then is it possible on my 7 months old daughter name and myself as guardian?
    what is the possible solution to contribute in PPF account. please suggest.

  51. Babita

    Hi Manish,
    Its great to get all this information in so detail.. I appreciate your dedication..

    I want to open a PPF account.
    1. I heard that the PPF maturity amount can be withdrawn only from that place/branch of the bank where you have opened it. Is it true?
    2. Is it necessary to have an account in the bank where you want to open a PPF account?

  52. Harmit

    I have a PPF account with Post office that ended on March 20, 2011. I was not aware of the partial withdrawal facility and decided to continue without contribution. However it recently came to my knowledge that I can contribute as well as withdraw upto 60% during the block of five years. I wish to contribute now would it possible for me to continue with contribution, penalty etc?

  53. Y.S.R.SRINIVASULU

    I OPENED A PPF ACCOUNT AND COMPLETED 15 YEARS ON 01.04.2011. BUT I PAID THE SUBSCRPTION FOR THE 16 TH AND 17 YEAR ALSO. I HAD NOT GIVEN ANY FORM H. NOW I WANT TO CLOSE THE ACCOUNT. PLEASE FIND SOLUTION.

  54. Arati

    Hi Manish,

    Thanks for sharing the info. I hve one query.
    I have to open a PPF A/c. Can u suggest which one is better PO / SBI or ICICI.
    I am little confused. I find ICICI – online banking more convenient but at the same time I am not too sure of the service or reliability as this is for long run.
    So what would you suggest.

    Regards
    Arati

  55. naresh bhadiyadra

    Dear Sir,

    I had opened the PPF account with SBI in FEB 91. It was extended for 5 years on maturity. Last year I forgot to inform the bank to extend it further. Today when I deposited the cheque in my PPF account it was returned with a note that the account has matured. Can u please guide me so that I can put my case with the bank
    1. Whether the PPF accounts are extended by default ?
    2. Can I claim the interest on PPF for last one year?
    3.Can the same account be extended at a back date?

    Regards

    Naresh

  56. naresh bhadiyadra

    I have a PPF account with SBI from Feb 91. It was due to mature in Mar 06, when I got it extended for 5 years till Mar 11. In Mar 11 I forgot to get it extended. Two days back when my cheque for PPF subscription was returned by the bank, I came to know about it. How can I get it extended now ? Last year my subscription was accepted by bank in Mar 12 and was also given the intrest till Mar 12. What about the intrest from Apr to Oct 12?

  57. Sunny Gill

    I would like to open a PPF account in my and my two childerns name (i.e 3 accounts). Can I deposit Rs 1 Lac in each account or is they a limit of Rs 1 Lac that has to be split into the three account (i.e Rs 33333/- each per yr).

      • Sunny Gill

        Thanks for your reply.
        So what you are saying…
        1. I can invest 50000/- per year in my PPF account.
        2. Plus 50000/- in one of my childerns account (me being the guardian)
        3. Club the the second child with my wife so she can invest 100000/- into the
        second childs account.
        Is that what you advise…..

  58. Sharad Agrawal

    Hi,
    As PPF account matured in 15 years. If I extend my PPF account for the next 5 years. Then the interest earned during 15-20 years of my PPF account will be taxable or not?
    For ex: I invest Rs. 50000 per annum for the 15 years then my maturity amount after 15 years will be approx. Rs. 1545054.00. If I extend my PPF and also invest Rs. 50000 per annum for the next 5 years. then the interest earned on my PPF account during 15-20 years will be taxable or not?

  59. varun

    Hello Manish
    Can i deposit unaudited cash in my ppf account?I mean..da cash which i have not withdrawn from my bank account and is not from CASH IN HAND..?

  60. Narendra Shah

    Dear Manishji,

    My son have PPF account with 2 time extension period of 5 years.He can withdrw 60 % of his total investment.Now 2 years are remaining for his maturity.Can he elegible to withdraw total amout before maturity period?
    Awaiting your reply soon.Regards
    Narendra Shah

      • nikhil

        hi manish,
        i have a ppf a/c which got matured on 01/04/2012.i have not filled form H & contributed further in between april 2012 to december 2012.now i would like to know that would i be able to claim the deduction under section 80C on the contribution made in between april 2012 to december 2012 & further what would i have to do to extend my account further for a period of five year keeping in mind that i have made the contribution without filling form H.

  61. natarajan

    18.12.2012
    M.N.Krishnan,
    Mettur Dam.
    Sir,
    I am assessed to Income Tax.
    I am paying PPF from March 1991.
    By 2007 it was extended for 5 years.It ends by 2012,March by giving a requisition letter.
    Again by April 2012 I have paid PPF for the year ending 31.03.2013.
    Now I want to withdraw the full amount.
    The SBI officials told me that now it can be withdrawn fully but interest will not be paid because the interest is entered by 31 st of march every year.
    Now I have some doubts
    Can I close the PPF account now in the middle of a year.
    If I withdraw fully by April 2013 , whether the amount paid towards PPF during this year will be taken credit for 80-C for the accounting year ending 31.03.2013.
    Can I open a new ppf account after 01.04.2013.After closing the old account by withdrawing full amount.
    I want the entire amount for paying a loan.
    Further can I invest more than one lac per year.Is there any limit.Will interest will be paid for the payment morethan one lac.
    Apart from my PPF account can I open PPF accounts in my wife’s name and minor daughter’s name seperately.will they fetch interest.
    How my IT assessment will affect.
    Kindly oblige me with your guidance.
    Thanking you with regards,

  62. Saurabh

    Hi Manish,
    Nice article.
    I would like to know whether we can vary the amount to be deposited in PPF
    each year?
    eg: say if I deposited 50000rs in first year and next year increased it it to 80000rs.
    Again decreased it to 10000 for third year.Is it allowed?

  63. Vaibhav

    @Saurabh – Yes, you can vary the amount you deposit in PPF every yr, based on your convenience. So the investment amounts u hv given in the above example are allowed.
    Just make sure you deposit minimum Rs.500 every yr so that the account remains active.

  64. MK

    Hi Manish,
    it is really useful article, going through the article and many comments, now I am wondering whether the interest calculated on my PF account and advise given by post office is indeed correct. Need your expert advise. ( sorry for the long comments but I wanted to provide the complete information!!)

    I have a PPF account opened in Aug 1998 with following contribution history for first 2 years.

    FY 1998-99 , INR 1000, 14/Aug/1998
    FY 1998-99 INR 25000, 05/Sep/1998
    FY 1998-99 INR 25000, 18/Jan/1999
    Interest calculated by post office for FY 1998-99 INR 2070.

    FY 1999-00 , INR 25000, 19/Jul/1999
    FY 1999-00 INR 20000, 27/Sep/1999
    FY 1999-00 INR 5000, 13/Nov/1999
    FY 1999-00 INR 10000, 01/Feb/2000
    Interest calculated by post office for FY 1999-00 INR 9473.

    with respect to the above I have the following questions.

    1. Post office advised me that my PF account will mature in Aug 2013 and I should be able to withdraw whole maturity amount in Aug 2013. By going through your post and comments , it seems it will mature only on 31st Mar 2014 and I would be able to withdraw the amount on or after 31st Mar 2014. Which one of this is correct ?

    2. Is is the interest calculated by post office is correct for FY1998-99 and FY1999-00? Again based on the comments and post, I calculated these as follows.
    Interest FY1998-99 INR 2320 ( I have taken interest rate as 12% for the whole year)

    Interest FY1999-00 INR 9766 ( I have taken interest rate as 12% upto Dec 1999, 11.5 % for Jan 2000 as interest rate changed to 11% wef 15-Jan-2000 and 11% for Feb & Mar 2000).

    I would appreciate if you can clarify these queries.

    Thanks & Regards
    Manish

  65. Dear sir,
    I have a PPF a/c No.10949651042 with SBI Tura Branch opened on 28-03-2003. And present balance in my a/c is Rs.158677.52. Now I like to draw a partial amount. How much can I withdraw? And what is the current rule let me know.
    Awaiting for early reply.
    Thanks.

    Prakash Ghosh

  66. Dear sir,
    On 28th December I have withdrawn the amount Rs 29000.oo only according to their rule on balance which was 5 years back i.e. 31-03-2007 that time my balance was Rs. 58179.52. In this regard kindly send me the present rule so that I can show them for confirmation.
    Thanking you.

    Prakash Ghosh

  67. KGV Prasad Rao

    Hi Manish,

    I Opened a PPF account with SBI on 30.03.83 and maturity date is 1.4.98. I extended the a/c for 5 times and now the marturity date is 30.03.2013. I have withdrawn Rs 1,45,000 on 18.07.2011 (60% of the bal in a/c). The present balance in my a/c is Rs 3,25,000. Now I want to remit Rs 50,000 in Mar 2013 and get exemption under Sec 80C of IT Act. Shall I withdraw the entire amount in Apr 2013 and close the account ? Am I in order ? Please advise…………..

  68. Loknath

    Dear Sir,
    I had opened a PPF a/c in Mumbai on April 1993 for 15 years and then extended for 1 block of 5 years. Considering one year locking period, I believe that the maturity would be on April 2014 (20+1) year. Is it correct. Or It is April 2015 (i.e. 15+1, +5+1) i.e. after 22 years. I look forward to your confirmation.

    Regards
    Loknath

  69. DB DESAI

    Any circular reference giving clarification on the issue of payment of interest at the time of withdrawal of matured ppf account after 15 years? SBI says interest can be paid in March only. I think it should/is paid till the date of withdrawal and closing of account. Customer does not want extension, contribution etc. He has completed 15/16 years in March 2012 and wants to withdraw full balance in say NOV 12. I think he should get interest from April 12 to Nov 12 (actual date of withdrawal). Please quote some reference of circular regarding this issue.

  70. nisha

    i hav 2 ppf account .one mine and other minor (son ).i took tax rebate by one only.
    i renewed my ppf for 5y,but mean while i want to close it..can it be possible??…pl.
    suggest some idea….i read some your reply regarding 2 ppf ac.,bank suggest me to open ac.for minor…is there any problem if????wht should i do???

  71. navin kumar

    my ppf account in sbi is 10 year old. can i wirthdraw amont in march2013 (as per my eligibility)and later in April2013((as per my eligibility)

  72. abc

    Someone tries to pick hole in one crore example. Well, if you live up to 150 years regularly depositing the maximum from when you are 2 years, you will be shocked as to spend all those crores! THe Guru is always wise.
    Jokes apart, the column is excellent.

    abc

  73. sevan

    Hi Manish,
    Thanks for the information.
    One query. In case i deposit 1 lac every year for 25 years what will my final sum be? (considering that I invest every year on april 1st and i do not make any withdrawals. Also presuming current rate of interest to prevail throughout). Is there any calculator in your website to calculate this?

  74. Shankar Singh

    Dear Manish,

    I was open a PPF A/c on 2008 , now (feb-2013) I want to close this A/c permanently , Is it possible ?

    Please reply

  75. NAVIN

    Sir
    I am from Punajb. I opened a PPF account for my son when he was minor and was residing with me here in Punjab only. Now my son is major by age and has shifted to Gujarat for his studies. The original account is without the middle name but now as he has shifted to Gujarat and according to their culture he is writing father’s name in the middle. All his documents like passport, PAN bear his name with father’s name in the middle. Now my query is to whether his name can be changed as per current in his already existing account or I have to close that account and open a new account. Doing so will be a loss in the form of non taxable interest he is earning right now……..pls advise.

    • It should not be a big issue … even though the name on his documents containing father name as middle one, its fine .. what matters is that he has his FIRST name and the surname in the documents !

  76. Hi Manish,
    Must compliment you on an excellent article throwing much light on PPF operation.
    A month back one of my acquaintances tried to close his a/c & encash the amount. This a/c was transferred from SBI Nariman Pt. Br to Andheri Br. The officer told him that he will only get the amount available prior to the previous two 5-yr extensions ! Is there a specific rule in the PPF Act which we can quote to the SBI person to remove this faulty impression from SBI official’s mind so that my friend gets his full entitlement from the PPF a/c ?
    Thanks very much.

    • The first question is “Why he will get lower amount” ? What is the explaination for that ? I suspect that there was no form H filled up which is to be done if one wants to contribute into PPF account after maturity ..

      • Thanks for the prompt reply.
        Pl inform what is form H ? Shouldn’t SBI have informed my friend about this requirement while accepting contributions for 10 years ? Is there any way that Form H can now be filled in?
        Would appreciate v.much if you could enlighten on this aspect.
        Thanks once again.

        Yogesh

  77. Ujjwal

    Dear Manish,
    Thanks for your nice article. One think I would like to know that If I choose PPF without contribution then after 5 years can I opt for PPF with contribution. As you have said that reverse one is possible pls let me know the answer for the 1st one.

  78. m k

    Nice article. I have a question –

    My PPF account is about to mature (15 yrs) on 31/03/2013. Can I invest 70,000 as tax saving for FY 2012-13 on 25/03/1013 and then close the account and withdraw entire amount on 31/03/2013 ?

    Thanks,
    MK

  79. Biak

    Hi Manish,

    I have a query too, see ma sister has a ppf acount and had been deposited for the past 2years, bt now as she went to our native place she stopped depositing the money,can she withdraw the full amount? will there be any deduction? can she withdraw from Manipur itself or she have to withdraw anyhow from the branch where she opened the account??

  80. Arvind

    I have a PPF A/c with SBI since 1995-96 (July’1995 to be precise). When I went to deposit money this month, I was told that the account had matured in 2011 and now cannot be extended. But I was allowed to deposit money in 2012 as well. So my queries are
    1) As the deposit was allowed in 2012, after the maturity in 2011, doesn’t it means that the account has been extended or shouldn’t the extension period be upto Mar’2013 that 1 year from the last deposit?
    2) Because of the benefit of tax free interest, I do not want to close my existing account. So can this account continue as one without further contribution and for future investment open a new PPF account?

    • You actually had to fill up form H if you wanted to keep it active with contribution .. Now your account is extended “without contribution” .. so you will have to wait for 5 yrs now , if you want to again deposit something there ! .

  81. Reena

    Hi Manish,

    My PPF got matured after 15 years and I forgot to fill form H. As I understand in this case the account by default gets extended without contribution for a block of 5 years. Now after this first block of 5 years is over can I convert it back to account with contribution for the next 5 year block by filling form H?

      • Reena

        Hi Manish,

        Thanks for the prompt reply.

        My account is with SBI and honestly there are not many who understand the PPF rules thoroughly.

        So is there any such written part in the PPF rules which confirms that after 5 years of non contribution the account can be changed to contributing again. This will help me in convincing the SBI guys.

        Regards

  82. Kavita

    Hi Manish

    I already have a PPF account. Can I open one PPF account in my daughter’s name also, who is 5 years old??

  83. AMAR KUMAR GHOSH

    DEAR MANISH,
    MATURITY DATE OF MY PPF A/C IS 31/03/2014. WHEN I HAVE TO APPLY FOR EXTENTION FOR FIVE YEARS WITH CONTRIBUTION?

  84. I have opened the PPF account in 1990. After 15 years I opted for further extension.
    As on date also I am continuing, it is 23 years. Kindly let me know the rules. I want to continue for 2-3 years more.

  85. Sunita

    Hi Manish,

    Great article. Thanks.
    One basic question however regarding determination of the first maturity date of a PPF a/c. I opened my PPF a/c in FY 1998-99 and 2012-13 is the 15th financial year since then, 98-99 being the first one. I assume that end of 15th FY i.e. 31-Mar-2013 is when my PPF a/c matures. Kindly confirm.

    Thanks and Regards,
    Sunita

    • The starting date for your PPF will be considered as the 1st april of the next year when you opened your PPF , so if you opened it on June 1999 , then your opening date is 1st apr 2000 .

  86. SUMIT DEB

    Hi Manish,
    Simply a superb article for a newbie investor like me. Congrats!!!
    I had opened a PPF Acc. on 22-Sept-2012.
    1)What will be the starting date of my Acc.? (Is it Mar2013?)
    2)Which year will the Acc mature?(2026 or 2027 ?)
    3)Which is the best way to invest in PPF? – lump-sum on April 1st every year or a regular monthly investment?

  87. A Syal

    Hi Manish,
    I had some queries on the ppf account. I opened my account in sep 2007. Considering this information
    1) what would be the year of maturity? Will it be March 2022 or March 2023?
    2) Also after maturity I would like to close this account, since I can invest the maturity money some place else. Wat is the procedure for the same?
    3) Post maturity once the application for account closure is given to post office, how much time it takes for them to settle the account?
    4) Does the post office people give a cheque in the name of the account holder or do they do a direct credit into the S/B account of the account holder? I know for PF withdrwal now days PF department credits the S/B account directly.
    Please advice me on these areas.

  88. janhavi shete

    hi manish
    my sister is working in college as lecturer frm last two years.so nw she want to leave her job. in every month sme ammount cut off frm her salery.so nw tell m hw to withdraw d money frm tht account

  89. Manoj Chouhan

    Dear sir
    i have PPF a/c stated from 7/1998 so as per norm a/c is due for payment, i approach to bank for closed the my a/c bank are reply u can not closed the a/c actual rule is 15+1 year= 16yrs pl inform me what s correct

  90. PRADEEP JOHN

    Thanks for sharing. I have a 6 month child. If I contribute to PPF for 15 years as guardian. After 15 years still my son would be a minor only. What will happen during maturity.

  91. Parveen

    Hi Manish,
    I have PPF a/c with IOB which I want to transfer to ICICI. I hold different signatures with both banks. Will it be an issue while transferring my PPF a/c.

  92. Soma Mukherjee

    Hi,
    It’s a amazing article,from which i came to know a lot about PPF a/c.But here one question arised is a nominee can continuing operate the ppf a/c same like after the subsciber’s death or he has to close the a/c?

  93. Liyakath

    Hi,

    Great Information.
    It is 7th year that I started to contribute in post office PPF. My doubt is, lets say I go for partial withdrawal option in the current year. How this impacts the maturity amount at the end of 15yrs.

    Thanks
    Liyakath

  94. Jipal

    I have a PPF account which has completed 15 years in 2010. After that it has been extended and I have done some partial withdrawal in 2012.

    Now I have taken a home loan, I want to do prepayment using that money. But as per bank, my PPF account is now under 5 year lock period, so can neither withdraw any amount nor close the account until 31st March 2015.

    By any chance any other way to get the money from PPF account.
    Thanks !

  95. hellosibba

    I have opened an PPF account (in SBI) in beginning of 2008. now i am in verge of immigrating to another country forever. Can I close the account ? is there a way out.
    I have closed almost accounts here in india. Now it will become pain to maintain. Also i have quite some amount in this account.
    What is the best way to get it closed, even if i have to pay any penalty to government.

  96. Dr Manisha JP

    My ppf aCCOUNT OPENED ON 04 aUG 1987 WAS further extended for 5 years then again 5 years. My balance on 31 March 2013 was 30 LACS. i HAVE PAID ANNUAL CONTRIBUTION OF ONE LAC AND AGAIN EXTENDED FOR THE THIRD TIME FOR 5 YEARS UPTO MARCH 2018 What is the maximum onetime partial withdrawal allowed in entire 5year period . Will it be calculated as 60% of 30lacs as on 31 March 2013 OR BALANCE ON 31 mARCH 2014 OF 33.5 LACS

  97. harishj

    I have PPF account with SBI opened in Gurgaon branch of SBI. If after 15 years, I am in some other part of India, will they ask me to visit the home branch to get it either extended or withdrawn? or it will be possible to visit the nearest SBI branch and get it done?
    And what if I am outside India?
    If there is a need to visit the home branch in 1st scenario (if I am in some other part of country) and there is a need to visit the branch (in case I am outside country) then is it recommended to shift the account to ICICI who is much more customer friendly and have no such requirement?

    My PPF account in SBI is linked to my savings account in SBI. Will the proceeds come directly in my savings account?

    Harish

    • Hi Harish

      I dont think you have to visit the branch for this . I think the staff there needs to be shaken up a bit . Please tell them on email that you are filing a RTI on this and also complaining to banking ombudsman . Ask them to give you the things in writing and show you the rules book .

      Manish

  98. Subhash Mittal

    Dear Manish,
    I opened PPF account in post office in FY 2007 and in year 2013 i got transfered this account in SBI,so my query is the maturity time span would be 15 years from the year of opening the account in postoffice that 2022 or it would be 2028 (FY of trancfer of the account in SBI and
    How SBI would come to know that mine account was opened in 2007…whether Poast Office will inform the bank or i have to submit any document to bank to tell it that i had opened this ppf account with postoffice in 2007….Pls.Clarify.
    Thanks
    Mittal Subhash

  99. subhash mittal

    which option will give me more return at maturity-
    if i deposit Rs 60000/- anually one time as lumpsum OR if i deposit Rs 5000/- each month (12 times a year)

  100. Rama

    I have a PPF account with SBI, which was open in 29/Dec/1998. Now, i am in need of some money and would like to close the account at the maturity period of 15yrs. I have paid Rs. 1L as contribution in Nov’13.
    Questions:
    – Maturity : when is my account getting matured?
    – What is the process to close this account ?

  101. Arpit

    Hello, I have a slight doubt about PPF maturity, It would be great if you can shed some light:
    – 15 years of my PPF account completed in 2010.
    – I extended the account for 5 years and continued contributing.
    – I am planning to contribute this year and next year as well.

    When the 5 year extention block finishes in 2015, I plan to close the account and withdraw the money. If “X Rs” is the balance in 2015, how much can I withdraw?

    And if the answer is not X, then when and how I can withdraw the remaining money?

  102. S C BINDRA

    My PPF account with SBI is maturing on 01.04.2014 and I would like to extend it without any further contribution. Is there any Govt website where the PPF withdrawal rules are given so that the same can be shown to the SBI officials? I have been told that I can withdraw only 60% in one year and that I can withdraw it more than once a year. I know it is wrong but how to convince them. A letter to the bank for a clarification has elicited no response. Thanks.

    • Actually when I wrote this article, I referred to some PDF documents at Post office website which I found by search engine . But Now I am not able to . But you always have an alternative to get this information using RTI . Even that info will be treated as proof of source !

      Manish

  103. Avisek Das

    I have PPF account in SBI . Currently i have shifted permanently to another location. Can you tell me what is the procedure for transferring the account to other bank?

  104. Manish

    Hi Manish,

    I have a PPF account in Post office which got matured in March 2013 at 15 years completion. I want to extend it with contribution and filled up form H in January 2014 but the person at the counter refused to extend it as it has a default of FY 2009-10. I was told about this default only when I went to extend the account in January 2014. I offered to pay INR 500 for FY2009-10 and all the penalties, still he refuses to extend. Kindly let me know what does rule say in this case and what can I do.

    Manish

    • I am not aware exactly how it will be in this case, but I dont feel if its correct what he did . You should be able to pay the penalty and then extend it. I am not 100% sure on this. but you should have asked for the written thing from the person there . now you can file a RTI and ask for this !

      Manish

  105. Singla

    Hi Manish,

    My wife’s PPF account had been matured in 2012. From your article i understand that as we did not take any action so account must had been extended with the option “not to contribute anymore”. Now if I want to start contributing again into PPF account of my wife:
    – Do i need to close the existing account and open a new one? Is it even possible to close the account before 2017 i.e. 5 years from 2012?
    – If i can close the existing account; then do i need to visit the home branch where account had been opened or any SBI branch is fine?

    Thanks,
    Singla

  106. Guruprasad Burli

    Hi, I am investing Rs 1 Lac every year in PPF. At the end of 15 years from the opening of account can i withdraw the complete Rs 15 lacs+interest even though the last installment of Rs 1 Lac would be 1 yr or less than 1 yr old.

  107. Apurba

    Manish sir
    If I extend my PPF account after 15 years with subscription option (once or multiple times) do I claim income tax deduction on the amount contributed by me in my tax returns.

  108. naina

    Dear Manish,
    very nice article with a detailed explanation..Thanks!!!
    Can you pls guide me how to calculate maturity date.
    Thanks again.

    • Maturity date is 15 yrs + start of the next financial year when you opened PPF account. So if you open PPF account on 19th Sept 2013, then the next year start is 1st April, 2014 and your maturity date is exactly 15 yrs later from that date , which is 1st April 2029

  109. 1. I have opened my ppf account on 31st Jan 2014 in SBI. What will be my financial period so that i deposit Rs.1Lac to get interest & in which year my ppf scheme will mature.

    2. Is it profitable to invest Rs.1 Lacs in one time so that maximum interest may be earned & which is the right date to invest money in a month

    3. The interest income which is earned on ppf is tax free under section 80C. As I m non tax payee, whether any form is to be filled to claim tax free interest or it may be automatically exempted from tax when ppf scheme matures.
    Waiting for earlier reply

  110. Thanks for the reply, Sir, i have made a deposit from Jan’14-March 2014, still i have not received any interest. When interest will be credit to me for period 2013-2014.

  111. SK Choudhury

    In case of an extended PPF account after 15th year as partial withdrawal of 60% is allowed. Is it possible to deposit back the withdrawal amount at later date.

  112. Aparna

    Hi Manish,
    We have plans to move abroad in another 6 months and I am trying to open a new PPF for my daughter (minor), as mine will mature when I am NRI and so I cant make contributions after that.
    When I told SBI, they asked me why I want to open in her name, I said this and they are telling that anyway once I am NRI, I cant contribute any money to PPF. It’ll remain dead till maturity. Even after I come back and become resident again I can not contribute. So there is no use opening it!!! Heights of ignorance right? I told them I know the rules and I can continue to make investments on accounts opened when I am resident indian. This conversation was on phone. They told me to come and open and they will also check with higher officials. Hopefully I am right and they are wrong. What do you say?
    Regards
    Aparna

    • Yes , you are right and they are wrong, as per current rules, an NRI can continue his PPF or any PPF where they are guardian, I wish you had just opened a PPF account and did not discuss anything with them, if they try to impose any thing on you, then tell them your plans are cancelled and please open a PPF , Why did you take their opinion on this ?

      Manish

      • Aparna

        I did not take opinion as such. It was on phone and it just slipped out of my tongue :( when they asked, “Why do you want another minor account when you already have a PPF?”. In fact it was none of their business to ask that qn in the first place. One can have as many as 3 accounts, if one has 2 children. Poor me. I will tell them my plans are cancelled.
        In fact just now I checked that NRI can even continue the PPF beyond maturity without contribution. Only the extension with contribution is not possible. This is definitely a boon to people like me who plan to go for 5 yrs and come back for sure. My PPF matures in aug 2018, as it was opened in Aug 2003.
        Thanks for your reply.
        Aparna

  113. Aparna

    Even if I dont say my plans are cancelled, I think they cant deny me a chance to open, because I am currently resident and they cant do anything right?
    But I am also worried if their s/w can have bug and reject when I try to invest. The linked savings account is a joint account where primary holder is my mom, who will still be resident. So, savings account will remain domestic account right? I think NEFT from that will happen smoothly.
    -Aparna

  114. Hi, I have deposit Rs.45000/- today (on 3rd April). If i deposit more Rs.45000/- tomorrow (on 4th April). Will i get the full month interest on combined amount of Rs.90000/- which i deposited in two parts. Pls. reply fast as i have only 1 day to invest before 5th April. Thanks

  115. sumit bhattacharya

    I want to know that if ppf a/c holder wants to close ppf a/c after 15 years from the date of first initial subscription writing in plain letter to branch manager that proceeds of the maturity of the ppf a/c maintained in his branch may kindly be transferred to the savings a/c that is maintained in the same branch, can branch refuse on the ground that only through form ‘C’ to be applied.
    I want to know that for withdrawal form ‘C’ is required.
    Please enlighten me

  116. Rupesh Shah

    In my mothers ppf a/c my father is the nominee. I was not aware of this fact. At present both my father & mother has expired. The amount is below two lacs. How can I claim the amount as I am the only legal heir ? Please advise.

  117. O.V.Srinivasasn

    MY QUERY

    Dear Sir,

    I opened PPF Account with SBI on 01.09.1999 at Belgaum . I approached bank for withdrawal on April 21.04.2014 as 15 financial years gets completed on 3103.2014 but the SBI manager says i can withdraw after 01.04.2015 as 15 financial years years gets completed only on 31.03.2015. Pl guide and advice me.

    Regards

    O.V.Srinivasan

  118. PAWAN JAJODIA

    Dear Mr. Manish,

    My query, My PPF maturity date was 31st March, 2014 but I not yet received the refund from bank. Will I get Interest for the late payment.

  119. Chaitali

    My PPF account opened in Feb 1999 is due for maturity right now. I live in a different city now. Can I authorise someone else to close my account and remit the money in my account? Any mail id I need to write to?

  120. O.V.Srinivasasn

    I opened PPF account on 01.09.1999 with State Bank of India. with Rs 100000 as initital deposit and i used to deposit 15000-20000 yearly in PPF account . Now i need to withdraw the money for my son’s higher education as he would be joining MBBS during June 2014.

    Pl advice whether 15 years already completed on 31.03.2014 so that i can withdraw the money now for my son’s education or will get completed only on 31.03.2015 in which case i have to wait till 01.04.2015 to withdraw the money. Your immediate reply is requested.

    O.V.Srinivasan

    • PPF maturity date is 15 yrs from the year ending when you open it , so your openening date to be considered will be 01/04/2000 . ANd your maturity will be 01/04/12015 only .. but before that you can withdraw partially from your PPF if you require it urgently ~!

  121. akhil

    Hi Manish, Ihave a query regarding my ppf account. My account is in my home town. What i do is to send money every once in a hile for depositing. Just want to know regarding the post maturity procedure. How do post office people give the maturity proceeds back to the subscriber? Is it cheque or DD? Also since the account is in my name wil the chewue or DD be in my naem or someone from my famly can get that cheque in theri name? I do know that there is an option to transfer the account from one post office to other, but i do not want to do that.

  122. venugopal

    sir
    My PPF maturity date was 1/4/2013 i have extended it for another 5 years with contribution. Now i am in need for some money for my house repair works how much i can withdraw.

    venu

  123. Sandeep Kumar singh

    Hi Manish

    I opened my PPF account in Dec 2008. And my query is that
    a) could i withdraw 50% of PPF amount this year ?
    b) I transferred my PPF A/c from one state to other this year , if i withdraw will it effect any calculation of year like it call 1st year, although PPF a/c changed after transfer.
    c) If i can withdraw the 50% this year then that amount calculation will be ending of 5th year or 6 year.

    I hope you understand my query. If any doubt just let me know.

    Thanks
    Sandeep Kumar singh

      • Sandeep Kumar singh

        Hi Manish

        Thanks for your response .

        Could you let me know that if I opened my PPF Account on Dec 2008 then when i can withdraw 50% of Amount means after dec 2014 or dec 2015.

        Could you give me exact month and year as per rule of PPF for withdrawing.

        • You could withdraw once a year, from the 7th year onwards. Such withdrawals must not exceed 50 per cent of the balance at the end of the fourth year, or 50 per cent of the balance at the end of the immediate preceding year, whichever is lower. Premature closure of a PPF account is permissible only in case of death.

  124. BAPPA RAY

    Sir, I had opened a PPF account with SBI on 25.03.1998 and paid monthly subscription till 20012-13, without any withdrawal at any point of time. I knew that 15 years have passed on 31.03.13 but I decided to keep the amount in the account beyond 31.03.2013 (without paying annual subscription) so that it may earn interest after 31.03.13 and as I am now retiring from my service, I shall now withdrawn the amount with upto date interest for other investment. In last week I went to SBI from withdrawing that amount maturity payable by is the deposit lying in my account as on 31.03.13. He clarified that no interest is payable to me after 31.03.13 unless I renew the account at for 5 years from 31.03.13. I have not withdrawn the amount till now as I am not interested to renew the account and till I get such confirmation from other source. Now my contention is that as the amount is lying in the account since 31.03.13, I am eligible for payment of interest uptodate, may be in lower rate, at the time of withdrawal now. In Bank fixed deposits interest at savings deposit rate is paid in such cases. Kindly inform me the rules in this regard . Thanking you – BAPPA RAY

  125. sk mohanty

    I have left an organisation coming under Delhi Govt Act & Rules with my PF contribution of 18 months. Will I get both the share (mine as well as the company) as I left the organisation and joined in Govt sector ? Please intimate.

  126. Karthik S

    Hi,

    Kindly confirm post maturity whether the amount will be credited to my sb account or do I need to visit the home branch personally to withdraw the benefits? kindly confirm.

  127. monotosh

    CAN ANYONE TELL HOW TO WITHDRAW MONEY ONCE IT COMPLETES 15 YEARS…WILL IT BE TRANSFERRED TO THE LINKED SAVINGS ACCOUNT…
    HAS ANYONE PRACTICALLY DONE SO..
    PLEASE ANSWER..

  128. Brij Bhushan

    I opened an PPF a/c on 31/3/94. In some years the minimum amount has not been deposited . This shortage of payment has been deposited with late fee of per year 50/- per year. Now, the maturity date was Ist 31/03/09, IInd Block 31/03/14. I made Last deposit of Rs 500/- on 30/01/14.. Now today on 19/11/14 the status is being shown as five year not completed. when the amount is withdrawnable

  129. somnath

    sir I am confuse .open my ppf account in sbi or icici bank. or close the ppf ac in 3 or 4 year its possible or not. how

  130. Ramesh Kumar Mittal

    My PPF account in SBI is matured for closure. I wish to close my PPF account and wish to transfer the maturity amount with interest till date to my saving account in an other Bank i.e. HDFC Bank. Is it necessary to me to present in SBI branch personally to close my PPF a/c ? Or is it possible through a messenger / authorized representative along with Form – C duly filled and signed requesting to credit the maturity amount in my saving account in HDFC Bank or issue a DD/BC in my favor with pass book and authority letter for this purpose ? Please give a prompt reply. Thanks

  131. Saurabh agarwal

    Hi Manish,

    My PPF accunt opened in 1999 is already past 15 years now.

    I want to continue the account with intent to fresh deposits over next 5 years.

    My PPF account has around 12 Lakhs, so for 2014-15 80c Savings if i put my 12 Lakhs in extension mode will that be considered as savings under 80c for current year??

    Thanks to help on this, as it is very urgent to understand.

    Best Regards,
    Saurabh.

  132. Atul

    Hello Manish,

    Great Article!

    I would like to know about few more things.

    1. After the completion of 15 years of the PPF account, is the total amount taxable with the interest earned?
    2. As I read that interest rate is calculated only once in a year. Is it a fixed date for all accounts like 31th march or so? If yes then will I get interest for the said year if I deposit my money on 30th march?

    • V.Narayana Murty

      No premature withdrawal is allowed for PPF accounts. Only in the case of the death of a subscriber, their nominee /legal heir can close the account by submitting the required documents as guided by the Ministry of Finance.

  133. Anand Chavan

    Is it necessary to apply to bank for extension of PPF account maturity period with ferther contribution? If yes, then within how many max. days after maturity?

  134. Dr.Aloke Chatterjee

    I have started ppf in Lajpatnagar,delhi Post office & first payment made on 12/3/1996 i.e FY 1995-96 & since then kept on paying in each FY,in jan’ 2010 Further extended for 5 years.My questions are :
    1.Can I withdraw the total amount now i,e april 2015 ? being Total 20 instalments are over.
    2.Is there any moratorium ? The last instalment I have made in FY 2014-15 ,26/6/14 & 14/11/14. Does it mean that I shall have to wait till 14/11/2015 to complete one year from the last payment ?Or after the 31/3/2015 there would be NO Interest added ?
    3.What are the documents e,g Photo,ID,PP,Adfhar card etc needed to withdraw ?
    Regards.
    Dr.Aloke Chatterjee.

      • Dr.Aloke Chatterjee

        Yes I tried & visited lajpatnagar p.o on 7 th april’15,where I have been depositing since last 20 years.The astt post master checked & confirmed & asked to come after 7-10 days,since it has to go to Lodi Road p.o for verification etc.22 nd april ,on receiving phone call from my gaent mrs sarda talwar that something written by Lodi rd post master’Cheque can’t be made for ….” is illegible.I reached next day i,e 23 rd (delhi at 40 deg C ),Shocked to see “a/c for further extension for 5 years “.i argued,what is this,Ii have never applied & it has no sense,since last 20 years over & I am at 68.Lajpatnagar’s me lekhram expressed helpless nes & written what I said & asked me to go to Lodi rd p.o.I had no option.Mr Shishu pal Sharma is the astt post master did this.Why ? who’ll answer.Only thing on my charging,he said tell me what you want.I said,of course loudly,can’t you read ? Its a withdrawl application.he suddenly finds that the a/cs-deposits,interests etc are NOT TALLYING in between two post offices,he has to call for Ledger & tally & again I have to make visits.How many,GOD only Knows. Its a unique experience of harrasements & of course with some hidden agenda.Hope The ‘Good Governance’ prevails in this country.

        • Hi Dr.Aloke Chatterjee

          I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

          Its a bit long cut, but works well

          Manish

  135. Harish Patel

    My HUF’s PPF account with bank of Baroda got matured on 31.03.2015. As per i.tax act HUF’s PPF account can not be extended hence I applied to close the account on 01.05.2015. Bank closed the account and issued cheque for the amount as on 31.03.2015 without giving interest for April 2015. Am I eligible for interest on outstanding amount as on 31.03.2015 for April’15 ? If yes, kindly quoat PPF rule.

    Thanks & Regards
    Harish Patel

    • No , the PPF has matured on Mar end, and I guess in giving the cheque and those procedures 1-2 months goes .. hence I think you will not get any interst

      Manish

  136. manoj kumar agrawal

    मेरा ppf (huf) अकाउंट स्टेट बैंक ऑफ़ इंडिया में है | जो की वर्ष 2003 में खुला था क्या वह 15 वर्ष से पहले बंद हो सकता है? क्या ऐसा कोई नियम आया है ?

  137. Nikhil Jain

    My ppf account got matured on 30.04.2015 after completion of 15 years. Unaware of this event I deposited certain amount in my PPF account on 01.05.2015. The money was debited from my account on 02.05.2015. But then they called me on 08.05.2015 informing about the completion of 15 years of PPF account for which I am very thankful to them and told me the requirement of extension of PPF account. They then credited money in my PPF account on 09.05.2015. Will I be eligible for interest for the month of may, 2015. Till then the money was with the SBI.

    Regards

    • V.Narayana Murty

      Yes, you are eligible for the interest. Please note that PPF accounts will be matured on April 1st only. Not on any other day.

  138. Rajib

    Hi Manish,

    Got to visit this page as I’m planning to close my car loan from the PPF account ,18 years old.
    Is it wise to withdraw from PPF account and repay the car loan (current ROI: 10.7%)?

    Thanks
    Rajib.

  139. joydeep

    Hi Manish,

    Thank you for the article as it cleared all my doubts. But I have a question, regarding which even the local bank official could not gave me an answer.
    I have a SBI savings account, linked to the PPF account. So after 15 years(after maturity), if I do not make any contribution, will the entire money be available on my account(Just like, when FD gets matured, it gets added to the savings account) or will I have to submit forms to withdraw that amount?

    In short, what are the ways to withdraw the matured PPF money?

    Regards,
    Joydeep

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