How to manage the corpus effectively after your PPF account matures

financialexpress.com:

The Public Provident Fund (PPF) stands as a long-term savings and tax-saving scheme backed by the government. It allows investors to trim annual taxes and amass a substantial corpus. Being exempt from taxes, including earned interest, PPF holds a prominent place among the top tax-saving investments under Section 80C of the Income Tax Act. Operating for a minimum of 15 years, it offers the facility of limited partial withdrawals.

Investors can contribute up to Rs 1.5 lakh annually, either as a lump sum or in multiple installments, with a minimum of Rs 500 per year. Opening a PPF account is possible at major banks, both private and public, or at post offices. With annual returns currently at 7.1%, PPF remains one of the most lucrative traditional investment options. When your PPF account matures and you don’t require the funds immediately, various options are available to manage your corpus effectively.

You must know that it is not necessary to close the PPF account once it matures. You can keep and extend the account as long as you wish without making any further deposits. The good part is, you will continue to earn the applicable interest every financial year without the liability to pay the taxes on the same. Moreover, you are eligible to withdraw tax-free sums every year from the PPF available balance thereafter. However, one needs to take note of the fact that if the PPF account is continued without fresh deposits for a year or more after its maturity, you would lose the option of starting fresh deposits again in the account.

Also Read: How to make the most of your cashback credit cards

You may consider continuing with the PPF account with further deposits as you have been doing so far. This extension is in a block