How to withdraw your PPF Maturity Amount and where to invest it?

PPF or Public Provident Fund is one of the very common investment options opted by many people in India. This investment opportunity has a simple structure and is very easy to understand. The returns are expected at the return rate of 7.6% and the lock-in period is of 15 years. When it comes to the withdrawal of the amount after the lock-in period is complete it is very easy. But if the withdrawal is to be made before the lock-in period gets complete, there are certain rules and regulations that are to be followed.  The rules of withdrawal for PPF are:

  • The withdrawals can be made before the lock-in period of 15 years completes under certain terms and conditions
  • It is possible to withdraw the money only after a time period of 7 years has passed
  • The withdrawals can be made at the beginning of the financial year
  • Only partial withdrawals can be made from the entire amount as per the suggested restrictions
  • In case there is a loan taken on the basis of the Provident Fund account the loan amount will be deducted from the withdrawal
  • Only one withdrawal can be made in one year

Investment Options after Maturity of Public Provident Fund

When the PPF account matures, the account holders receive the principal amount plus the accumulated interest. Not all the amount is needed right away in most cases. Keeping the amount in the savings account is never a good option as it never yields enough interest. The amount gained is a big one and investing it right is the best option if you do not need the money right away. There are following options of investment:

  • Fixed Deposits: You can open a fixed deposit account and get assured interest on the principal amount that you are investing. Finance companies like Bajaj Finance provide the option of opening FD accounts and also provide interest rates. The maximum interest rate is 9.10% which is offered to the customers that fall in the senior citizen category. FDs provide the best return on investment among the safe options of investment.
  • Pension Plans: You can invest in a pension plan and avail it on a single pay basis. This way you will be able to secure a stable income after your retirement. Having monthly payouts is a good option over having savings, as savings can get exhausted with time. but if the money is received partially every month the expenditure gets optimized.
  • Mutual Funds: If you are willing to take some risk then you can allocate a certain portion of the maturity amount in mutual funds. This will help you divide and make the investment and maximize the returns in the long term. However, investing the whole amount in mutual funds is not a wise option as they are subjected to market risks.


If you have a long-term vision for planning your finances, then you surely have either considered PPF or already invested in it. The investment requires a big commitment as it involves a lock-in period of 15 years but the withdrawals can be made after 7 years are completed. Another major aspect of PPF is that the investment of maturity amount, there is a big amount received at maturity and it has to be invested well. There are many options of investment, but you need to take the decision based on your long-term financial goals and immediate requirements.


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