After the 15-year lock-in period ends, PPF investors have three choices according to reports from NDTV Profit. They can withdraw the entire amount and close the account, extend the account with fresh contributions, or continue the account without making new deposits. For investors who want to continue investing, the extension request must be submitted within one year of maturity to the bank or post office. This allows them to deposit money and claim eligible tax benefits under Section 80C under the old tax regime.
The biggest advantage of extending a PPF account is continued tax-free compounding, as reported by NDTV Profit. For example, if an investor has built a ₹50 lakh PPF corpus by the end of 15 years and chooses not to withdraw, the balance can continue growing during every five-year extension period. If the corpus remains invested and earns 7.1% annually without additional contributions, it could potentially grow to approximately ₹70.5 lakh after 5 years, ₹99.2 lakh after 10 years, and ₹1.39 crore after 15 years. This makes PPF particularly attractive for investors who do not immediately need the money and want a low-risk option for retirement planning.
There is no limit on the number of extensions after the initial 15-year period, according to NDTV Profit reports. The account can be extended in blocks of five years, with investors able to choose to extend it again at the end of each block. This means a PPF account can effectively continue for decades, allowing investors to benefit from long-term compounding well beyond the original maturity date.
PPF becomes more flexible after maturity during the extension period, as reported by NDTV Profit. During the extension period, investors are allowed partial withdrawals, subject to applicable rules, with only one withdrawal generally permitted in a financial year. This means investors can access part of their money when needed while the remaining balance continues earning tax-free interest. However, if no action is taken, the account generally continues with the existing balance earning interest, though fresh contributions may not be allowed unless extension formalities are completed within the prescribed timeline.
