When exactly does PPF account mature ? Answer is not 15 yrs !

POSTED BY manish ON December 20, 2014 COMMENTS (97)

When does a PPF account mature ? If you thought that its 15 yrs from the date you started your PPF account, then you are wrong ? Yes – there is a myth around this topic and most of the people do not know how does it actually work.

Its extremely simple to find out when exactly your PPF account matures, and let me show you how to calculate it!

How is PPF maturity date calculated for PPF account ?

The maturity period for PPF account is 15 years from the close of the financial year in which the initial subscription was made. Its that simple. So if you open your PPF account on 4th Nov 2014, this date lies in the financial year 2014-2015 , then the financial year ends on 31st Mar, 2015 .

So the 15 yrs will be calculated from this date (31st Mar, 2015) and the lock in year would be 2015+15 = 2030 . So the exact date would be 1st Apr, 2030 in this case.

ppf maturity calculation

Note that PPF maturity always happens on 1st Apr , and not any random date of a year. Most of the people just add 15 yrs to the date of opening of PPF account to find out the maturity date.

Below you can see a short video which will explain PPF maturity calculation to you. Have a look at it.

So technically your PPF account can mature in 16 yrs in best case, suppose you open your PPF account in the first week of Apr, then your 15 yrs will be calculated from the next year (financial year ends on 31st Mar of the next year).

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97 replies on this article “When exactly does PPF account mature ? Answer is not 15 yrs !”

  1. M Muthulakshmi says:

    Hi Sir
    I opened a PPF a/c in Mar1996. After 15 yrs I extended for 5 more yrs by paying regularly.
    20 yr period ended on 31 Mar 2016. Howevever I paid in July 2016 for 2016-17, I have not given any request letter for extension and amt for extended period is credited in my a/c.
    The Bank record shows the maturity date as Mar 31,2011 ie 15 yrs. Can it be rectified by the bank.
    can I close the a/c now.

    1. If you have not extended it yourself, then YES

  2. M Muthulakshmi says:

    Hi, Sir, My daughter opened a PPF a/c in Mar 2007 . She got married in 2011 and settled in abroad
    Since then I was paying every year a small amt to keep the a/c active. Whether she can close it now.
    Or I have to continue paying till 15 yrs term is reached.
    please clarify

    1. PPF cant be closed before 15 yrs complition !

  3. Suresh says:

    Dear sir i have PPF account, if i am extend for another five years, can i close the account before the 20th year. If yes can i get the amount without any interest loss.

    1. No , once you extend it for next 5 yrs, you will have to continue it then. You cant CLOSE It before 5 yrs .

  4. Sunny says:

    Do I need to pay TDS on maturity amount if I open two PPF accounts for my two kids but not showing those savings in my 80C savings sections(i have my own savings to show under 80C)

    1. Do you mean tax or TDS ?

  5. sachin says:

    what will be maturity date of a minor account becomes major before 15 year of opening whether it is 15 year from opening or 15 year from attaining majority

    1. 15 yrs from opening !

  6. Chaitanya says:

    Hi Manish,
    I have a different query. I had opened PPF account long back when I was in India. Then I moved out of India and eventually acquired other nationality. Now I have returned back to India. So technically I am resident indian. My account will expire it’s tenure of 15 years next year. I do not know whether I can continue this account being a resident but non ordinary citizen. Do you have any clue?

    1. If you are resident right now, then you can extend it. If you are NRI yet, then you cant !

  7. PPVerma says:

    I could not deposit any amount in my ppf a/c during 2014-15. Subsequently I deposited Rs 600 in April 2015 thinking that the fine of Rs 50 would be deducted and the a/c would continue. But no fine was deducted and the entire 600 is shown deposited in the account and the account continues. Further I invested Rs 5000 in Februaly 2016. This amount is also shown deposited in the account. I want to know how and when the fine for not depositing in 2014-15 would be deducted and if not, Shall I have any problem at the time of maturity?

    1. Better enquire with the bank/PO people on this.

  8. kshitiz says:

    Hi Manish,
    One question regarding PPF deposit.I have opened PPF account in Oct 2015.So it will be matured on 1 Apr,2031.I want to know that mine 15th year deposit will be in 2029-30 so do I have to deposit money in account in financial year 2030-31 or not??

    1. Yes, you have to deposit !

  9. Manih says:

    hi
    if i had an ppf aacout at ahmedabad sbi branch after maturing can i withdraw amount from any sbi branch or should i visit same branch fro withdrawal?

    1. Hi Manih

      I am not 100% clear, but I think as of now , you need to visit the same branch

  10. sanjay says:

    How much amount can i invest in PPF account now in a financial year..

  11. sanjay says:

    Hi Manish,
    Thanx for sharing information regarding PPF account.

    I need to know that i have 2 kids & i want to open their PPF account. can you tell how much amount i could transfer in their account in whole year as per Govt norms . i know that Max limit is 1.5 lac but is there any transaction issue to transfer in their account from my account.

  12. Baba says:

    I am working in Private company earns 10per month and 2K OT some times. I will work hard so my manager gave his own project to work and it will last for 12-24 months only In this 12-15 months I will earn 45K per month
    I have opened my PPF account 2 years but till now 10K is deposisted as my monthly salary 10K and my monthly expenditure is 8-9K

    Now I am thinking to deposist all my project money to PPF so that I will not worry to deposist in PPF anymore(As my only Salary income with that project is not suficient to invest in PPF)
    ie., 45K * 20 = 10.80

    Can I deposit 45K per month in PPF even though If I dont earn interest beyound 1.5K per year as in later year I will get the interest right?

    1. Yes, you can deposit it

      1. Naresh says:

        If he is depositing 45K per month means it will be 5.4 Lacs per year. But I heard 1.5 Lacs will be the maximum to deposit per year but you said above “can deposit”.. May I know how is it possible? and what is the limit of maximum amount deposit to ppf?

        1. one can deposit more, but one will not get the interest

  13. Pravas says:

    Dear Mr Manish,
    First of all thanks a lot for the good job you are doing. I want to know one thing, I have started a PPF of 20k at a time per year,but in the next year can i invest more than 20k in the same PPF account. and what are the benefits or losses.

    1. YEs you can invest any amount between 500 and 1.5 lacs in any year !

  14. Nitin says:

    sir pls reply

    if I invest in my wife name (transfer funds from my account to her account in same bank) each month for 15years, do I need to take maturity amount in my income or it will be under her name.

    I heard that since it’s tax free & long term, so I will not have any tax implications on it.

    kindly advise

    1. It will be her income

      1. Nitin says:

        thanks sir

  15. nitin says:

    if I invest in my wife name (transfer funds from my account to her account in same bank) each month for 15years, do I need to take maturity amount in my income or it will be under her name.

    I heard that since it’s tax free & long term, so I will not have any tax implications on it.

    kindly advise

  16. abhishek says:

    Hi sir ..i hav two doubt first one is this if i will open it end of the year then will intrest of money not be calculated? Nd second is after maturity period ..can i withdraw some money nd remaing money can got intrest?

    1. I didnt get your question

  17. Chirag says:

    Hello…
    I am a fresher and earning 25k/month. After cutting down all expenditure, i can invest around 7-8K/month. How much should i invest in PPF and if i also wish to have a RD,how much should i invest and whicha re the good plans for me…

    1. Hi Chirag

      If you can invest maximum of 7-8k , I suggest you do that !

  18. Karthik says:

    Once again Very useful info Manish.

    But I dont understand discussion about good time to start the ppf and good time to invest…
    I dont think its so imports, what important is how early you start and how disciplined you are in investing.
    When everyone say dont time the market to invest(for equity related) i think there is no point in timing debt…..

  19. Bhavaani Mamidi says:

    Thanks Anand! I have one more question. If a person opens one at the age of 60 or 65 , what happens to the account if something happens to him in that duration?

    1. Hi Bhavaani Mamidi

      Legal heirs can take that money

  20. Bhavaani Mamidi says:

    Hi Manish,
    I really appreciate all the wonderful work u r doing. I really wish I had known this much before. I took lot of unnecessary LIC children policies , whole life policies of LIC, SBI and Shriram. Kind of stuck. Had I known this site before I would have escaped from those agents. Anyways I would like to know if I open a PPF account 1.5 lacs every year, will I get the tax exemption on this amount as well as 1.5 lacs in my life insurances too? or only 1.5 lac of any one?
    Is March or April good for opening a PPF account?
    Thanks for u’r help.

    1. Bhavaani Mamidi says:

      I get it now. April 1-5 is the best time to open a PPF account.

      1. Anand says:

        Both PPF and life insurance premium fall under section 80C and overall you can claim only 1.5 lakhs per year.

        As for opening the PPF account, March is the best month to open and April is the best month to contribute. If you open PPF account in March, your PPF matures after 15 years, but if you open in April, the account matures in 16 years.

    2. Hi Bhavaani Mamidi

      Only maximum of 1.5 lacs can be claimed , not more than that ! . Anytime is good to open PPF

  21. CHANDU916 says:

    hi sir, i have 2 doubts regarding PPF ACCOUNT like 1. if i open PPF ACCOUNT on 1st april 2015 and i would like to invest 50 k as a one time investment every year and here i am assuming 8.5 is standard interest rate throughout the tenure.How much i will get on 1st april 2031???. 2.if i open PPF account on 31st march 2015 and i would like to invest same amount like in the 1st case and assuming same interest rate.Here how much i will get on 1st april 2030???.

    if you can helpme out of this sir i would be great full to you.

    1. 1. 8.5% is not fixed for the whole tenure, It keeps changing from time to time ! , also one cant just explain how much will you get , do a rough calculation yourself on this .

      2. Same answer !

    2. Jay says:

      @CHANDU916 , assuming the numbers you are considering , there would be difference of ~1lac in returns. The one opened in Apr will giver more returns.

  22. Meghasyam says:

    Manish, i have a doubt on EPS amount…..it is the max limit 6500INR getting credited every year into my account, will i get it with my final settlement after resigning of 7 years service?

    1. Yes you will get it

  23. Pravin says:

    Hi Manish,
    If I want to open a PPF account in a city, say Bangalore but all the documents (KYC) like PoA mention my address to be Mumbai, can I do it?

  24. T. Yatin says:

    I recently closed one PPF account for my son on completion of 15 years, as NRIs cannot extend it. Is that correct? Do NRIs also get the benefit of the extra period based on financial year as explained above?

    In some other disucssion it was mentioned that SBI gives bank drafts with heavy charges while closing the account. Thanks for keeping me forewarned. I got every single paise back by giving a letter asking SBI to either (a) Give a local cheque (b) make an NEFT?RTGS transaction to the account (c) Sending the cheque to the local address. Also that I did not wish to receive a draft! They gave the cheque in 15 minutes! Thanks again.

    1. Thanks for sharing that .. Yes NRI cant extend PPF account, that financial year rule applies to even them !

    2. mono says:

      THANKS..
      CAN YOU EXACTLY SAY IN DETAILS WHAT HAPPENED…
      DID YOU SUBMIT THE LETTER FIRST..
      OR FIRST HAD A CHAT THEN THE LETTER.
      STATING NO DRAFT ….
      YOU KNOW I AM ASKING LIKE A CHILD
      BUT THESE SARKARI BABUS..
      ARE SUCH THAT THEIR VIVID OWN CROOKED NONSENSE SELF CREATED RULES HAVE TO FOLLOWED..
      THANKS AGAIN

  25. Advait Thakur says:

    Hi, my PPF a/c is lapsed for the last 5 years. Can I reactivate it & operate for the rest of the term? Plz guide me. Thanks .

    1. Yes, you can do that, you will have to pay Rs 50 per year penalty along with minimum Rs 500 for each lapset year !

  26. prashant chauhan says:

    Dear Manish,

    My PPF account will be maturing next year. Can you please help clarify below :
    1) What will be the procedue to get the maturity amount ?
    2) Can I open a new PPF account in a new bank once the present one matures and is closed ?
    3) Will the maturity proceeds be counted in my taxable income for the FY?

    Regards,

    Prashant

    1. Ok , thats pension scheme under EPFO . I have written about it in detail here – https://www.jagoinvestor.com/2012/05/epf-facts-employee-providend-fund.html

      1. prashant chauhan says:

        Hi Manish ,

        My query was regarding a regular PPF account πŸ™‚ Presently it is with SBI and I want to open the new one in ICICI due to ease of operating with them.
        ———————————————————
        My PPF account will be maturing next year. Can you please help clarify below :
        1) What will be the procedue to get the maturity amount ?
        2) Can I open a new PPF account in a new bank once the present one matures and is closed ?
        3) Will the maturity proceeds be counted in my taxable income for the FY?

        1. Hemanth says:

          Are you sure ease of operation is better with ICICI than SBI. Check out this article which clearly explained that PPF a/c with SBI is far better than ICICI.

          http://curiouslogic.in/2014/02/how-sbi-ppf-is-far-better-than-icici-ppf/

  27. Ramesh says:

    Hi Manish… Can you please write an article on the pension option introduced by Govt/ EPFO … min of 1kpm to 32xx pm amount… how does this things work, T&C etc..

    1. Hi Ramesh

      Can you give me more info on this . Exact name of the scheme ?

      1. Ramesh says:

        Hi Manish,
        I am referring to this news:
        http://timesofindia.indiatimes.com/india/Base-pension-sum-under-EPFO-now-Rs-1000-per-month/articleshow/41133647.cms

        Can you please do a simplified article on what is changing and how to take get benefit of that?

  28. Giridhari Pattanayak says:

    Really great. Thanks a lot for providing this valuable information.

      1. Mohit says:

        Hi Manish, nice articel. What I would like to know if we get whole money with interest at the end of 15 years or the money is paid in installments?

        1. Hi Mohit

          You get the full money !

          1. Mohit Kalra says:

            Thanks alot Manish..I also read your other articles. All I can say is BIG THANK YOU!!

            1. Welcome .. Glad to know that Mohit ..

  29. Ananth says:

    Hi Manish,

    Very nice and useful information. Thank you so much for sharing.

    I had opened PPF account on 03-Jan-2013. As per the article says it will get maturity on 2028 (the financial year ending 2013+15=2028). So i can withdrawal the money on 1’st April 2028. Am i correct. If I am wrong please let me know when is the maturity date.

    Thanks,
    Ananth

    1. You are correct .. your account will mature on 1st Apr 2028 , but you can partially withdraw much before the maturity date !

      Manish

      1. Ananth says:

        Thank you so much.

  30. Venkat says:

    Really PPF is a better investment option ,But where as Banks dont have proper info on loan on PPF and on partial withdrawl where they are interpreting their own.

    1. Tell me what info you need and I will share that with you !

  31. Amrutha says:

    Hi Manish,

    I had opened my PPF account on 2nd Jan 2013. The maturity date is shown as 1st April 2028. But as per what is mentioned in this article the maturity date should be 1st April 2029 (i.e 2014 + 15 years). Please clarify.

    1. Hi Amrutha

      You are doing wrong calculation on your side .. You opened it on 2nd Jan 2013, hence your financial year is ending on 31st mar 2013 .. So as per article only it will be 2013+15 = 2028 , so its right !

      Had you opened it on say 8th Oct, 2013 , then your financial year would have ended in 2014 ..

      1. Amrutha says:

        my mistake..thanks for clarification πŸ™‚

  32. Venkat Tata says:

    My understanding is that after the first 15 years it can be extended for 5 years at a time any number of times. Am I right ?

    1. sapna bajpei says:

      Ppf can be extended after 15 yrs only two times in the block of 5yrs each.further it can not be extended

      1. Thats not correct .. you can do it unlimited number of times. The staff at SBI / PO will tell you limit of 2 times, which is incorrect !

  33. Suresh says:

    Thanks for the Useful info!……Let me open the PPF account in the month of April’15

    Thanks,
    Suresh D

    1. Yes, that would be great !

  34. Niranjan says:

    Thanks for the information as most of us were un-aware about this.

  35. DEEPAK KUMAR SINGLA says:

    ONE MORE THING I WANT TO SHARE ALL OF YOU ABOUT PPF ACCOUNT THAT IT CAN BE EXTENDED FOR ONE OR MORE BLOCKS OF 5 YEARS EACH FOR N NO.OF TIMES.

    1. Venkat Tata says:

      This is what is least known that after the first 15 years it can be extended any number of times, 5 years at a time. But if you miss one year in the extension period you cannot make further contributions but withdraw amount once a year. For conservative investors one can have a constant source of tax free income. Am I right ?

  36. Kishore says:

    Very useful information. Wondering why no one told me this earlier.

  37. Prakash Shah says:

    In. Huf karta. Male and copacerners are wife and 2 daughters and if kart a father dies then wife female can be karts of hug or HUD dissolves. Pl guide. Thank u .

    1. Yes, thats correct .. Wife can be karta !

  38. Dr Koustubh Chakraborty says:

    Thank you so much for this valuable piece of information, as till now, I was also under the “myth” that it would be maturing 15 years from the date in June when I’d opened the account.

    Wishing you all the best !

  39. Piyush Patel says:

    so, i think we can open a account in march of any year,

    1. Yes, you can actually open it anytime throughout the year !

  40. srinivas says:

    I think you got it wrong. It is 15 years or less than that. Best case is 15 years. Worst case could be 14 years 1 month or less. It’s never 16 years. Maturity is on the first day of the 16th year.

    1. Hi Srinivas

      Can you explain more on that ? I dont think its less than 15 yrs . Its always 15 yrs from the last date of the end of the financial year . Check my explains and let me know if they are wrong ?

  41. Vijayakumar says:

    It can also be extended for 5 years if required.

    1. Rajesh Pande says:

      Nice & useful information.

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