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.

470 CommentsAdd Comment

  1. sanjeev

    Hi my self sanjeev, last year i opened a ppf account in punjab national bank, bank give only statement of my ppf acount, they not give me any passbook of my ppf account, I want to know that it’s necessary to keep passbook with myself for 15 years or statement is enought? Please reply me.

  2. Gautam Kamath

    Hi friends,
    One of my relative has a query regarding ppf before he approaches the bank.

    Hi.
    Had a query.
    Opened ppf account in 1989.
    Extended it 3rd time again by 5 years from April 2015.
    Tuk 50 percent withdrawal limit in April 2015 itself.
    Now can’t withdraw.
    Need money for personal use.
    Never took a loan.
    Can he avail loan now.If yes, how much.
    Pls help
    Regards

  3. ARINDAMMAJUMDER

    My ppf account opening date- 17/01/2001
    Maturity date- 17/01/2016
    When I get my entire money? Is it on 17/01/2016 or after 31st March 2016??

  4. Inder

    I have opened a PPF and a Savings account with SBI last year. Now SBI has started deducting small amounts frequently from my account without my permission which is annoying me. I have a salary account with HDFC from last 8 Years and i am very happy with the services. I want to close the SBI account as they have poor customer services and i am sure that they will not refund the deducted amount and will keep on deducting the amount in future as well. I have made a Tax Saving FD with SBI as well in March for 50k.

    Please advise what can be done in this case. I have a PPF and a tax saving FD with SBI. In this case can i close the account and keep my PPF running and once the FD Matures can they issue me a check?

  5. Ravi

    Hi Manish,

    Do you need to be personally available in the post office to close the post office based PPF account?

    My PPF account is matured and since am away, Is there provision to close the account by postal mail?

    Appreciated your reply.

    Thanks
    Ravi

  6. Dr Rajan

    Dear Manish, & Joydeep,

    I am sure that the PPF depositor has to make a withdrawal claim of the matured amount and indicate in that form that the amount may be credited to his/her SB a/c with SBI if he/she has one. The maturity amount will not be automatically (without your claim) be credited to SB a/c. This is because the depositor has also the option to retain the amount in PPF after maturity without further contribution and the bank would not know if you exercise this option or you want to withdraw.
    2. It appears from the above that an SB in SBI is must for getting the maturity amount.
    3. If you do not extend for another block of 5 years does the accumulated balance after maturity get interest? Please confirm after checking with the PPF rules/bank/PO.
    Thanks,
    Dr Durai Rajan

  7. Varun

    Hi Manish,

    After the PPF account completes 15 years, whenever we withdraw the allowed amount, does it cause any tax implications? Can the withdrawn amount be re-invested in the same PPF account and tax benefit be claimed on that re-deposited amount in that FY ?

    Regards,
    Varun

  8. 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

  9. 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.

  10. 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

  11. 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 ?

  12. 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

  13. 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

  14. 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?

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