Should I close my Indian PPF account when I move to the US or let it run to maturity?
A Public Provident Fund account cannot be opened by a non-resident, but if you opened it while resident in India, RBI rules let you continue it until its 15-year maturity on a non-repatriable basis; you simply can't extend it in five-year blocks the way residents can. The interest stays tax-free in India. The catch is the US side: the IRS may treat PPF interest as currently taxable to you as a US resident, and PPF gets no US recognition as a retirement account, so its 'tax-free' status doesn't cross the border. You must also report it on FBAR and possibly Form 8938. Many NRIs let it mature for the guaranteed rupee return but stop treating it as tax-advantaged. Weigh the paperwork against the modest benefit.
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