What will happen if you do not deposit money in PPF after 15 years? Will I get interest on the invested amount or not? Know the rules

The special thing about PPF account is that even after maturity, investors have the option to close the account and withdraw the funds. If an investor does not fill the extension form and does not deposit any new funds, the account goes into inactive extension mode. In such a situation, interest continues to accrue on the outstanding amount even if no new amount is deposited.

Investors can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh in PPF annually. This investment is tax-free under Section 80C of the Income Tax Act. Moreover, the interest earned is also tax-free. This is why the PPF scheme is popular among long-term investors and tax planners.

After maturity, investors can extend the account for another 5 years. During this time, they can deposit new amount or continue earning interest on the old balance.

If the investor chooses the active expansion option, he will have to deposit at least Rs 500 every year. However, if he chooses the passive extension option, he will continue to receive interest even without adding any new amount. Currently, PPF offers an interest rate of 7.1% per annum.

This means that even if an investor has an account balance of Rs 10 lakh and does not add any new amount, he will still get interest of around Rs 71,000 every year.