Want to Withdraw Money from Your PPF Account? Know the Rules for Extended Accounts

The rules for withdrawing money from an extended Public Provident Fund (PPF) account depend on whether you are still making contributions to it or not.

A PPF account matures after 15 years. At that point, you can either close it or extend it in blocks of five years. You can choose to extend the account either with contributions or without. There is no limit to how many times you can extend your PPF account, meaning you can continue it for 20, 25, 30 years, or even longer.

PPF Extension Without Contributions

If you extend your PPF account after the initial 15-year maturity period or any subsequent five-year block without making any further contributions, your balance will continue to earn interest. However, you're allowed to withdraw money only once a year, and there is no limit to the amount you can withdraw. This means you could withdraw the entire balance in one go if you choose to. It's important to note that if your account remains open without contributions for more than a year after maturity, you will not be allowed to make any future deposits.

PPF Extension With Contributions

If you choose to extend your PPF account and continue making contributions during the extended five-year block, you must inform your bank or post office beforehand. Under this option, the amount you can withdraw is capped at 60% of the balance at the start of the extension period. For instance, if your account balance is ₹70 lakhs when you extend it, you will be able to withdraw up to ₹42 lakhs over the next five years.

Additionally, you are still limited to one withdrawal per year. This means you can either withdraw the entire ₹42 lakhs in one go or take it out in installments over the five-year extension period.