PPF Maturity Update – If you’ve been putting your money into a Public Provident Fund (PPF) and think the benefits stop after 15 years — think again. There’s a little-known trick that can help you keep earning big money even after your PPF matures, and the best part? You don’t need to invest another rupee.
This smart move can get you ₹7 lakh per year or more, totally tax-free. Curious? Let’s break it down.
First, a Quick Recap: How Does PPF Work?
For those new to it, PPF is one of India’s most trusted long-term savings schemes. It’s backed by the government, offers great interest (currently around 7%), and your money is safe — no market risks here.
Key facts:
- Lock-in period is 15 years
- Interest is compounded annually
- Investments are eligible for tax deductions under Section 80C
- At maturity, you can either withdraw your money or extend the account
The Secret Trick: What Happens After 15 Years?
Here’s where the magic begins. After your PPF matures:
- You can extend it for 5 years at a time
- You have two choices: extend with or without making new contributions
This trick is all about the “without contribution” option. You don’t invest any more money, but your entire PPF balance continues to earn interest — just like before!
Now here’s the real win: Withdraw only the interest each year. That gives you a stable annual income and lets the original amount continue to earn more.
Let’s Talk Numbers: How Much Can You Earn?
Say you’ve built a solid PPF balance over the years — maybe ₹1 crore. If the interest rate is around 7%, that’s a cool ₹7 lakh per year in earnings. And yes, it’s completely tax-free under current rules.
Here’s a quick snapshot:
| Corpus at Maturity | Annual Interest @ 7% |
|---|---|
| ₹50 lakh | ₹3.5 lakh |
| ₹75 lakh | ₹5.25 lakh |
| ₹1 crore | ₹7 lakh |
| ₹1.25 crore | ₹8.75 lakh |
| ₹1.5 crore | ₹10.5 lakh |
| ₹2 crore | ₹14 lakh |
Why Extending Without Contribution Makes Sense
Still wondering if this trick is worth it? Here’s why you should consider it:
- No fresh investment needed — your old money keeps working for you
- Withdraw only interest and enjoy tax-free income
- Your principal stays safe and keeps earning
- Perfect for retirement — a steady, risk-free income stream
- Entirely backed by the Government of India
How to Do It: Step-by-Step
- Wait for PPF maturity (15 years)
- Submit Form H within 1 year from the maturity date
- Select “extend without contribution” option
- Your PPF account continues earning interest
- Withdraw interest annually or leave it to compound more
Easy, right?
Don’t Make These Mistakes
- Missing Form H deadline: You can still extend, but you lose the full benefits if you don’t submit it within a year
- Depositing new money by mistake: It could mess up the tax benefits and interest eligibility
- Touching the principal too soon: Try withdrawing only the interest to maximize long-term gains
Why This Is Perfect for Retirement Planning
Think about it — after you retire, you want stable income without stress. No chasing market returns, no worry about inflation eating up your savings. This PPF trick offers:
- Steady, tax-free income every year
- 100% safe and secure
- Keeps your retirement funds growing passively
- You get to relax and let the government pay you
Quick Comparison: Close vs Extend
| Feature | Closing PPF | Extending Without Contribution |
|---|---|---|
| Annual Income | None | Yes (Interest only) |
| Tax-Free Earnings | One-time | Every year |
| Risk Factor | Zero | Zero |
| Best for Retirement? | Not really | Absolutely |
Final Tips to Maximize PPF
- Start investing early so you have a big corpus by year 15
- Contribute the maximum ₹1.5 lakh per year during your active years
- Stay updated on interest rate changes
- Once matured, use this trick instead of withdrawing everything
Bottom Line
If you’ve been investing in PPF for years, this smart extension trick could turn your savings into a yearly income machine. Just by letting your matured PPF account sit and grow (without adding anything new), you can earn up to ₹7 lakh every year, completely tax-free.
No market risks, no additional effort — just a little planning and patience. It’s one of the safest wealth-building hacks for Indian investors, especially if you’re planning for a comfortable retirement.
