PPF Withdrawal Rules: Public Provident Fund has become quite famous among investors. Under this, investors can create a huge fund for the future. Most people have a misconception that the money deposited under PPF cannot be withdrawn before 15 years. However, this is completely wrong. Today we will talk about such circumstances under which you can withdraw earlier.
PPF Withdrawal Rules: PPF is a safe investment platform. Investing under it gives more than 7 percent return. In this you get guaranteed return, which means that the profit received in it does not depend on the stock market. The special thing about PPF is that the money received in it is tax-free. You invest in it for a long period.
Usually people invest in it and save money for retirement. You can also use this money for some big work like marriage and higher education of the child. Today we will know in which situation you can make early withdrawal under PPF.
How to withdraw money before maturity?
You cannot withdraw the money invested in PPF before 6 years. However, in some cases, you can withdraw the deposited money after 6 years.
Children’s higher education- You can withdraw money for your child’s higher education expenses like college fees or rising school fees. Apart from this, if someone’s child, wife or husband suffers from a serious or life-threatening disease, then also you can withdraw the money deposited under PPF.
However, if you withdraw the money before the completion of the period, you lose 1 percent interest.
How much amount can be withdrawn?
According to the information received in this regard, 50% of the balance that would have been there in the fourth financial year before the financial year in which you are going to withdraw can be withdrawn. You can withdraw this money only once in a year.
You can earn a stable income for retirement by investing the money invested in PPF in SWP. Under SWP, a fixed amount is withdrawn every month. The remaining money is invested in the stock market.
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