PPF After 15 Years: Extension Rules, Withdrawal Options Explained

Your PPF matures after 15 years. Should you extend with contributions, extend without, or withdraw? Here are the rules and the math.

1.Three options at maturity

When your PPF completes 15 years, you have three choices: (1) **Withdraw entirely** — take the full maturity amount tax-free. (2) **Extend without contributions** — keep the balance earning 7.1% interest, withdraw up to one lump sum per year. (3) **Extend with contributions** — continue depositing up to ₹1.5 lakh/year and earn interest on the growing balance. Extensions are in 5-year blocks. You must apply within 1 year of maturity for option 3.

2.When to extend vs withdraw

If you're in the 30% tax bracket and don't need the money, extending is almost always better. A ₹40 lakh PPF balance earning 7.1% tax-free for 5 more years (no new contributions) grows to **₹57.3 lakh**. The same ₹40 lakh in an FD at 7% for 5 years gives ₹56.1 lakh before tax, ≈ ₹46.2 lakh after 30% tax. Extension beats FD by ₹11.1 lakh over 5 years.

3.Withdrawal rules during extension

During a 5-year extension without contributions, you can withdraw any amount once per financial year. With contributions, you can withdraw up to 60% of the balance at the start of the extension period, in one withdrawal per year. Plan withdrawals strategically — time them for April-May to maximise the interest earned on the balance.

4.Key takeaway

Unless you need the money immediately, extend your PPF — the tax-free 7.1% compounding is too good to give up. Use our PPF calculator to model extended scenarios and see how your corpus continues to grow post-maturity.