PPF account has been considered as a better scheme for a secure future. You can invest in it for 15 years. In this, the nominee or family member gets money on the death of the account holder.
Rules for withdrawing money from PPF account
Public Provident Fund (PPF) is a popular scheme in small savings schemes. This scheme backed by the Government of India gives good interest. Children’s education, marriage and other personal needs can be met through investment in this 15-year plan. By the way, there is a lock-in period in it, that is, you cannot break it before the stipulated time. Despite this, if the account holders want to close it, then they can follow some rules.
Money cannot be withdrawn before 5 years
You must have completed five years of investment in the scheme to close the account under the PPF Withdrawal Rules. Meaning, if the PPF account is opened on 1st June 2020, then in 2025 you can withdraw money. However, on the death of the account holder, the nominee gets 100% PPF withdrawal exemption. In this, money can be withdrawn even after not completing five years.
Withdrawals possible even if these conditions are met
According to the rules, if there is a change in the residential address of the PPF account holder. Especially if he is leaving the state, then the facility of closing the account is available. Apart from this, if the life partner of the account holder or any dependent of the account holder gets a life-threatening illness, then he can close the account by withdrawing the entire amount. If the account holder needs money for higher education of himself or the child, he can still take a premature delivery.
Know how much will be fine
If the PPF account is closed prematurely, the interest rate will be 1 percent less. For example, if a person was getting 8.5% interest on the current contribution, but if he closes the PPF account prematurely, then he will get interest only up to 7.5%.
Also read: LIC policy: A chance to get 17 lakhs by investing Rs 200 per day, will get these benefits including bonus
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