Introduction The Public Provident Fund (PPF), introduced in 1968 by the National Savings Institute of the Ministry of Finance, is designed to encourage individuals to invest their savings and reap returns over time. PPF investments offer income tax benefits, allowing individuals to claim exemptions on the interest earned and build a financial cushion for their post-retirement needs.
The current interest rate on PPF is 7.1% per annum, determined by the Ministry of Finance. This interest is compounded annually and paid on March 31st. Upon maturity, which occurs 15 years from the account opening, individuals can withdraw funds from their PPF account.
In specific situations, after six years from the account opening, partial withdrawals are permitted. The withdrawal amount is limited to 50% of the total corpus in the fund at the end of the fourth year from the date of account activation.
For a detailed breakdown of PPF withdrawal rules based on duration, reasons, and withdrawal limits, refer to the table below –
Withdrawal | Time | Grounds For Withdrawal | Amount |
After the account matures | After 15 years from account opening | Any | Entire Corpus |
Partial withdrawal of funds | After 6 years from account opening | Any | 50% of the total available balance |
Premature closing of an account | After 5 years from account opening | Educational, Medical | Entire amount |
Also Read: EPF or PF Withdrawal Rules
PPF, or the Public Provident Fund, is a popular and preferred investment instrument in India that offers tax benefits and interest income. You can open a PPF account with either a bank or a post office, and invest up to Rs 1.5 lakh in a financial year. The tenure of a PPF account is 15 years, but you can extend it in blocks of 5 years for any number of times. You can also withdraw funds from your PPF account under certain conditions. Here are some of the PPF withdrawal rules and procedures that you should know:
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