A Complete Guide to PPF Withdrawal, Maturity and Extension Rules

02^nd Nov 2025...

Published By : Team 811

Key Takeaways

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme with a 15-year lock-in period that encourages disciplined investing.
Withdrawals before maturity are limited and partial withdrawals are allowed only from the 7th financial year onwards, up to 50% of the eligible balance.
On maturity, the entire balance (principal plus interest) can be withdrawn tax-free, or the account can be extended in 5-year blocks.
PPF extension can be done with or without fresh contributions; Form H must be submitted within one year of maturity for extensions with deposits.
Premature closure is permitted only after 5 years and under specific conditions such as serious illness, higher education, or change in residency, with a 1% interest penalty.
If no action is taken at maturity, the account continues automatically without new contributions but keeps earning interest.
Maintaining the account for the full tenure maximises the benefits of compounding and tax-free growth, making PPF a reliable long-term wealth-building tool.

The Public Provident Fund (PPF) is one of India’s most trusted long-term savings options. Backed by the government, it combines attractive interest rates with tax benefits and the power of compounding. However, since the scheme is meant to encourage disciplined saving for the future, it comes with specific withdrawal guidelines that every investor should understand.

Knowing when and how you can withdraw from your PPF account helps you plan better and avoid breaking financial goals prematurely. Let’s explore the PPF partial withdrawal rules, PPF maturity period, and the conditions under which you can extend or continue your account after maturity.

Also Read: Fixed Deposit (FD) Vs Public Provident Fund (PPF): Which Is Better?

What Is the Lock-In Period and When Can You Withdraw

A PPF account comes with a lock-in period of 15 years from the end of the financial year in which the account was opened. This means if you opened your PPF in December 2024, your 15-year period will be counted from March 31, 2025, and it will mature on March 31, 2040.

During this time, the money remains safely invested, earning interest at the rate notified by the government every quarter. Withdrawals are generally restricted before this period ends, but certain exceptions allow limited access to funds under specific conditions.

The clarity on withdrawal rules makes PPF a disciplined savings vehicle that builds a long-term financial cushion, especially useful for retirement or major life goals.

PPF Partial Withdrawal Rules

Partial withdrawals are permitted from the seventh financial year onwards. This means you can make your first partial withdrawal after completing six full financial years. For example, if you opened a PPF account in the 2017–18 financial year, you can withdraw for the first time in 2023–24.

Here’s what you need to know about PPF partial withdrawal rules:

You can withdraw up to 50% of the balance available at the end of the fourth year immediately preceding the year of withdrawal, or the balance at the end of the preceding year, whichever is lower.
Only one withdrawal is allowed per financial year.
The withdrawal amount must be specified in Form C, which can be submitted at the bank or post office where your PPF account is held.
The funds withdrawn are completely tax-free.

These rules ensure that while your money remains largely intact for long-term savings, you still have access to a part of it during emergencies or important financial milestones such as education or medical expenses.

Complete Withdrawal on Maturity

Once your PPF account completes its 15-year term, you become eligible to withdraw the full balance, including accumulated interest. At this point, you can either close the account and withdraw all funds or choose to extend it for further periods of five years each.

The PPF maturity period is one of the key features that makes this scheme attractive. It allows you to plan, knowing exactly when you can access your money. On maturity, you can withdraw the entire amount without any tax liability, as both the principal and interest earned are exempt from tax under Section 80C and Section 10(11) of the Income Tax Act.

PPF Extension Rules

After the 15-year maturity, investors can extend their PPF account in blocks of five years, with or without fresh contributions. Understanding PPF extension rules helps you make the right decision based on your financial goals.

You can choose from two options:

Extension without further contributions
If you do not wish to continue investing but want to keep earning interest, you can extend the account without making any fresh deposits. Your existing balance will continue to earn interest at the prevailing rate, and you can withdraw money once every financial year.
Extension with fresh contributions
You can also choose to extend the account while continuing annual deposits. In this case, you must submit a written request (Form H) within one year from the date of maturity. This option allows you to keep earning interest and tax benefits under Section 80C.

Extending your PPF can be a smart decision if you want to build further savings for retirement or long-term goals without taking additional risk.

Premature Closure Rules

Though the PPF is designed as a long-term investment, the government allows premature closure under specific circumstances after the account has completed five financial years.

You can close your account early only under the following conditions:

For the treatment of serious illnesses of the account holder, spouse, dependent parents, or children.
For funding higher education of the account holder or their children.
If there is a change in the account holder’s residency status (for example, becoming a non-resident).

A 1% reduction in the interest rate earned is applied to such withdrawals. Hence, premature closure should only be considered when necessary.

Why is it Important to Understand Withdrawal Rules

The withdrawal structure of the PPF ensures that funds remain protected for long-term savings while offering limited flexibility for emergencies. Understanding when and how to access your money helps you plan better and prevents you from disrupting the growth potential of your corpus.

Moreover, clarity around the PPF maturity period and withdrawal stages helps you align your investment timeline with major life goals, such as children's education, a home purchase, or retirement planning.

Benefits of Following a Long-Term Approach

While early withdrawals may seem tempting, letting your PPF run its full course offers unmatched advantages. The longer you stay invested, the more your contributions benefit from compounding interest. Since both the returns and withdrawals are tax-free, the effective yield becomes even higher compared to many other fixed-income instruments.

By maintaining discipline and understanding the PPF partial withdrawal rules and PPF extension rules, you can strike the right balance between liquidity and long-term growth.

Final Thoughts

The PPF is a long-term wealth-building tool designed to offer safety, steady growth, and tax efficiency. Knowing when and how you can withdraw funds helps you plan without compromising your financial goals.

After the PPF maturity period, you can either withdraw the full amount or continue your account for additional five-year blocks, with or without new contributions. Following the rules carefully ensures you make the most of this government-backed investment while keeping your savings flexible enough for life’s milestones.

Building financial discipline with PPF today can secure your tomorrow, one steady contribution at a time.

FAQs

1. Can I withdraw the full PPF amount before 15 years?

No, full withdrawal is only allowed after completing the 15-year lock-in period. However, partial withdrawals are permitted from the seventh financial year onwards under the prescribed rules.

2. Can I close my PPF account early?

Yes, but only under specific conditions such as higher education, medical emergencies, or change in residency. A small penalty of 1% reduction in the interest rate applies to premature closures.

3. What happens if I do not extend or close my PPF after maturity?

If you take no action after maturity, the account automatically continues without contributions, and your existing balance keeps earning interest at the prevailing rate until withdrawn.

4. Can I make new deposits after extending my PPF?

Yes, if you choose to extend with contributions, you can continue depositing up to ₹1.5 lakh per financial year, similar to the original account terms, and still enjoy tax benefits.