2. Maturity

The account has a maturity of 15 years but in reality, it runs for a 16-year period. The year of deposit is considered as ZERO year and deposits can be made for 15 more years, which makes it 16 years in all. The lock-in period falls with every passing year. So in the 14th year, it will only be one year.

A PPF Account, on the expiry of fifteen years, can be extended for a further period of five years at a time. The account holder should exercise option in writing for continuation of the account within one year to avail the benefits of exemption of interest from Income Tax on deposits made in a PPF account after expiry of fifteen years.

 3. Eligibility

Any adult resident Indian can open PPF account in his or her name or minors name in the capacity of guardian with SBI or its associated banks or other nationalized banks having a PPF account.

A person cannot open more than one account in his or her name or even have a joint account. NRI’s are not allowed to open a PPF account. If an individual becomes an NRI while the account is in operation, then he or she can continue to invest in the PPF account, on a non-repatriation basis.