PPF or SCSS: Which is the better retirement option?

It's a familiar crossroads for many retirees. For years, you've diligently invested in the Public Provident Fund (PPF) — a favourite among Indian savers for its tax-free returns, sovereign guarantee, and reliable compounding. Now that your account has matured, you're sitting on a substantial sum and a common dilemma: Should you extend your PPF for another five years or withdraw the money and move it to the Senior Citizen Savings Scheme (SCSS), which is currently offering an attractive 8.2 per cent? At first glance, the answer might seem obvious. SCSS offers a higher return. But there's more to this decision than just the headline number. What happens after PPF maturity? A matured PPF account doesn't have to be closed. You can extend it in blocks of five years — with or without fresh contributions. Many opt for extension without contributions. In this mode: Your existing balance continues to earn interest at the prevailing PPF rate, currently 7.1 per cent. You are allowed one withdrawal every financial year. And best of all, the interest remains completely tax-free. This makes the extended PPF

This article was originally published on April 14, 2025.