PPF accounts have been a popular investment option for people looking for long-term investment options that offer attractive interest rates. With PPF interest and refunds exempt from income tax, it’s not surprising that people have been flocking to this savings scheme.
However, investors need to understand that the balance in their PPF accounts cannot be fully withdrawn before the 15-year investment lock-in period. After the maturity date, investors have three options – close the account, extend the account for five-year increments, or leave it without contributing anymore.
Experts suggest that if investors don’t need a large sum of money, there is no harm in continuing to invest in PPF after maturity because it is 100% risk-free. By submitting Form H, PPF account holders can extend their accounts indefinitely. This is an excellent investment option for those who prefer to take on minimal risks.
One of the SEBI-registered experts has advised PPF account holders to extend their account period after maturity as it gives them higher returns than a bank fixed deposit and other less risky investments. It is essential to note that as PPF is tax-exempt, investors should consider continuing investments to beat bank fixed deposit returns.
The PPF is a guaranteed savings scheme backed by the Government of India, which encourages small contributions for investments and returns. Thus, investors can benefit from tax exemptions while accumulating retirement funds.
Overall, investors would benefit from continuing investments in PPF accounts after maturity as it is 100% risk-free with a higher return rate than a bank fixed deposit. Providing value addition to users, the PPF scheme is an excellent option for people who want to invest without taking on higher risks.
