Is it wise to extend public provident fund (PPF) account after maturity — explained
Public provident fund: After the 15-year maturity period, an investor can extend their PPF account in five-year blocks for an infinite number of times
Public provident fund or PPF account is a Government of India or GoI-backed small saving scheme, which is hundred per cent risk-free. This investment tool has been designed in such a way that it helps an investor meet its long-term investment goals like higher studies of child or financial requirements post-retirement. A PPF account falls under 'EEE' category as it allows an investor to claim income tax exemption on maximum deposit limit of ₹1.50 lakh in single financial year and PPF interest earned on one's deposit is completely exempted from any income tax outgo. Currently, PPF interest rate announced by the GoI for April to June 2023 quarter is 7.10 per cent.