PPF Account Withdrawal rule changed: Big news!

For long-term investment, the Public Provident Fund is a preferable choice. There is a tax exemption on the money invested, the interest received on it, and the amount received at the end of the maturity period in a PPF when the proper interest is available. As a result, it is extremely popular among investors.

PPFs have a 15-year maturity period. Some individuals believe that money invested in it cannot be withdrawn in the middle. His assumption is completely incorrect. Under some situations, a PPF can be closed before the maturity term has ended. Please explain the circumstances under which money can be taken from it in advance and the procedure for doing so.

Money can be withdrawn first in these cases.

In the event that a PPF account holder's spouse or children become unwell, the money can be withdrawn. Aside from that, account holders can withdraw the entire balance of their PPF account for their children's education. An account holder can close his PPF account even if he becomes a Non-Resident Indian (NRI).

After 5 years, money can be withdrawn

Only after 5 years has passed since the account was opened can it be closed by the account holder. If the account is closed before the maturity date, 1% interest will be withdrawn from the date the account was opened until the date it was closed. If the account holder dies before the PPF account matures, the five-year condition does not apply to the account holder's nominee. Before the end of the five-year period, the nominee can withdraw funds. After the account holder's death, the account is closed. It cannot be continued by the nominee.

The procedure for closing an account

If you want to take money out of your PPF account before it matures, you must fill out a form and send it to the post office or bank where you have a PPF account. A photocopy of the passbook as well as the original passbook are necessary. If the PPF account is closed owing to the account holder's death, the interest continues to accrue until the end of the month in which the account is closed.

Interest rate on a PPF

The current PPF account interest rate is 7.1 percent per year. In a financial year, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be put in a PPF. In his or her own name, a person can only open one PPF account.