PPF
Public Provident Fund (PPF) is a popular saving scheme among investors across the country. The reason for this is that investors get excellent returns without risk. Currently, PPF is getting interest at a rate of 7.10%. The lock-in period for the Public Provident Fund (PPF) account is 15 years. However, withdrawal options are very rare during this period. Also, the account is not allowed to be closed prematurely.
Partial withdrawal option after 5 years
PPF account holders are allowed to withdraw a part of the balance after 5 years from the date of opening the account. You can withdraw up to 50% of the remaining amount at the end of the fourth financial year before the withdrawal. PPF account premature closure before maturity is allowed only under certain conditions, such as medical emergency, needs money for higher education, or becoming an NRI. However, as fine on premature closure, 1% of the earned interest is deducted.
Not allowed to close PPF account before 5 years
The PPF account cannot be discontinued at least 5 years before the account is opened. The account holder will have to submit Form 5 and Assistant Documents at the bank or post office where there is a PPF account. During the pre-close, the entire amount deposited in the account has to be withdrawn.
Close PPF account before maturity
First of all go to the bank or post office where you have a PPF account. Fill Form 5, which is the form to close the PPF account. Submit the necessary documents that mention your PPF account ahead of premature closure. For medical emergency conditions, provide medical reports and hospital bills. For higher education, submit admit cards and fees receipts. In case of changes in residence status (NRI), provide evidence such as visa and passport. After verification, the bank/post office will take action on the application of Aap. If the information is found correct, your PPF account will be closed. Subsequently, the remaining amount will be transferred to your linked savings account. Based on the bank/post office, the process will take 7-10 days.
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