PPF maturity date falls on a holiday or you don't withdraw immediately: what happens to your money?

A Public Provident Fund (PPF) account matures in 15 years, calculated from the financial year of opening. Here's what happens if you don't make a withdrawal immediately. 

A Public Provident Fund (PPF) account comes with a 15-year maturity period, after which investors can withdraw the principle amount plus interest. The maturity is calculated from the end of the financial year in which the account was opened, rather than from the exact date of the first deposit.

For example, if you opened a PPF account in November 2011 (FY 2011-12), the account will mature on April 1, 2027. This is because the 15-year maturity period was counted from March 31, 2012 in this case.

However, the maturity date may fall on a weekend and depositors can also delay withdrawing the money because they forgot about the account or were unaware of the deadline. What happens in such cases? Let's find out.

Does PPF lock in for another 5 years if not withdrawn?

No, after the 15-year maturity period, there are no penalties or restrictions on withdrawals but only until a certain time period.

A PPF account holder must submit Form 4 (or Form H at some institutions) to their bank or post office within one year of maturity to extend the tenure of their account and keep making contributions. This is mandatory and failing to do so can affect liquidity, withdrawal flexibility, and future deposits.

An investor has the option to extend the tenure of their PPF account in blocks of five years, as many times as they want.

What if you don't take any action?