Public Provident Fund (PPF) is a great option for saving. By investing in it, you can raise a hefty amount for the future.
However, its maturity period is 15 years. However, there are some circumstances in which you can withdraw money before the maturity period. Let us know some rules including withdrawal of PPF.
At present, the interest rate of PPF is 7.10 percent. PPF interest is calculated on monthly basis but compounded interest is calculated annually.
PPF account holder needs to deposit a minimum of Rs 500 in a financial year to keep his account active, while one can deposit Rs 1.5 lakh in a financial year.
An individual can have only one PPF account and opening of joint account is not allowed in case of PPF account.
Partial PPF withdrawal is allowed from the seventh year of account opening. The account holder can also make premature withdrawals but is eligible to do so only after the completion of four years of opening the PPF account.
If one does not want to close his/her account, he/she can keep the PPF scheme active without contributing anything. In such a case, the interest rate will continue to be added to the balance till the closing date. The account holder can choose to withdraw any amount once per financial year.
If the PPF account holder wants to keep his account active with contributions, he can apply for extension on five years basis.
