Important Announcement: Modified PPF Withdrawal Rules!


The Public Provident Fund (PPF) stands out as a highly recommended choice for long term investments in India. Its appeal lies in the advantageous tax benefits and competitive interest rates it offers.

PPF accounts require regular contributions over a 15-year maturity period, which can be extended indefinitely in subsequent 5-year blocks. This structure provides investors with a secure and flexible means to build up their savings.

Notably, PPF accounts can be partially or fully closed in specific situations, adding to their adaptability in helping individuals achieve their financial objectives.

PPF Interest Rate:

Currently, the annual compound interest rate for the Public Provident Fund (PPF) stands at 7.1%.

The permissible deposit range in a financial year ranges from a minimum of Rs. 500 to a maximum of Rs. 1.5 lakh.

As an individual, you are restricted to owning just one PPF account in your name.

After five years, PPF funds can be withdrawn:

Once the mandatory five-year lock-in period has passed, individuals have the option to withdraw all or part of their funds from a Public Provident Fund (PPF) account.

This allows account holders to maintain an open account and access their savings, offering a combination of growth and liquidity.

Whether saving for significant life events, seizing investment opportunities, or addressing unexpected expenses, this flexibility makes PPF a secure long-term savings choice.

However, closing the account prematurely incurs a 1% early closure fee, calculated from the account’s opening date to the closure date.

Under the subsequent conditions, initial fund withdrawals are permitted:

Withdrawals from a Public Provident Fund (PPF) account may be made under specific circumstances before the compulsory five-year lock-in period concludes.

These include situations where urgent medical expenses require financial support for treatments or procedures.

Additionally, PPF funds can be allocated to cover the costs of the account holder’s or their children’s higher education.

In the event of the account holder’s unfortunate passing, the PPF funds can be rightfully claimed by the nominee or legal heir.

These conditions offer individuals the flexibility to tap into their PPF savings to address critical and immediate financial requirements, adding versatility to this otherwise long-term investment.

Procedure for closing the PPF account:

To close a PPF (Public Provident Fund) account, follow these steps:

  • Visit the bank or post office where your PPF account is held.
  • Complete the necessary withdrawal or closure form provided by the financial institution.
  • Provide your PPF passbook and identification documents for verification.
  • Specify whether you want a partial withdrawal or full closure of the account.
  • If it’s a premature closure, be prepared to pay the applicable early closure penalty.
  • The remaining balance, after deductions, will be provided to you either through a check or direct bank transfer.

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