How To Manage PPF Account Upon Maturity?

Public Provident Fund (PPF) is a government-backed debt investment vehicle that pays a quarterly adjustable rate of interest set by the government. When it comes to most popular long-term investments such as Equity Mutual Funds, National Pension System, Higher Return Fixed Deposits, Long Term Bonds and so on, the Public Provident Fund (PPF) is among the most popular risk-free options. PPF now has a compounded yearly interest rate of 7.1 per cent, which is much higher than the returns of leading bank FDs. It also has EEE status, which implies that the principal amount invested, the interest earned, and the money you get back at maturity are all free from taxation.

Individuals or minors can open a PPF account by making an initial deposit of Rs 500 up to a ceiling of Rs 1.5 lakh per year. PPF has a 15-year maturity period, but depositors can make withdrawals after 5 years if certain conditions are met, such as the account holder, spouse, or dependent children suffering from serious illness, the account holder or dependent children pursuing higher education, or the account holder changing his or her residency status. You have three alternatives once your PPF account matures. You can choose from one of these three options, which we'll go through briefly below.

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