For many Indians, the Public Provident Fund (PPF) is considered the most reliable way to save for the long term. It’s not only safe, but also offers tax benefits and a fixed interest rate of 7.1% from October to December 2025.

Since this is a 15-year plan, people often ask if the funds can be withdrawn before the 15-year term is over. The answer is yes, but only under certain conditions.

Lock-in Period
The lock-in period for a PPF account is 15 years. This means you cannot close the account and withdraw all the funds before this period is over. However, the rules are not so strict, as partial withdrawals are allowed after the completion of six years. From the seventh financial year onwards, you can withdraw a portion of your account if needed.

Partial Withdrawal Rules
The government has established these rules to ensure your money continues to grow and your entire deposit is not depleted all at once. The maximum amount you can withdraw is the lesser of two amounts: either half the balance at the end of the fourth year of the account, or half the balance at the end of the year immediately preceding the withdrawal. This way, you can withdraw some money in case of an emergency, while your remaining savings remain safe.

Premature Account Closure
Since 2016, the government has introduced the option to completely close your PPF account after five years under certain circumstances. This option is only available for treatment of a serious illness or for higher education expenses for yourself or your children.

If you do this, you face a 1 percent reduction in interest as a penalty, meaning you’ll earn 1 percent less than the stated PPF interest rate.

Loan against PPF
If you need money but don’t want to withdraw your savings, you can also take a loan against your PPF balance. You can take a loan up to 25% of your balance between the third and sixth financial years of your account. This loan must be repaid within 36 months. The advantage is that your account remains active and your savings remain safe.

After 15 years
When your 15-year lock-in period ends, you can withdraw all your funds if you wish. If you prefer, you can extend the account in 5-year blocks, with or without making new deposits. Many people choose this option because it keeps the money safe, earns tax-free interest, and is easily accessible when needed.

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The post PPF Withdrawal Rules : When and how much can you withdraw from PPF? Learn the full terms and conditions. first appeared on Rightsofemployees.com.

Sukanya Samriddhi Yojana is run by the Government of India. If your daughter’s age is up to 10 years, then you can invest in this scheme for her. Investment in this scheme has to be made for 15 years and the scheme matures after 21 years. A maximum of Rs 1.5 lakh can be invested annually in Sukanya Samriddhi Scheme.

In this long term scheme, interest is available at the rate of 8.2 percent. Due to the benefit of compounding, you can add a good amount of money to your daughter in the long run through this scheme. But there is one rule related to SSY which you should understand in any case. Most people are not aware of this rule.

Pre-mature withdrawal rule

Suppose you start investing in this scheme in your daughter’s name and after investing for about 5-6 years, you feel that you will not be able to continue investing in it further. In such a situation, it is obvious that you would not want to withdraw the amount deposited for 5-6 years.

But let us tell you that pre-mature withdrawal facility is not available in Sukanya Samriddhi Yojana. Only partial withdrawal can be made from this, that too when your daughter turns 18 years of age.

Partial Withdrawal Rules

Partial Withdrawal: The facility of withdrawal from the account is available after the daughter completes 10th class or after she turns 18 years of age. In such a situation, you can withdraw up to 50% of the total balance of the last financial year. The money can be received in lump sum or in installments. Money will be received only once in a year and money can be taken in installments for a maximum of five years. If you are withdrawing money for your daughter’s higher studies, then you will have to provide proof for higher studies.

Premature closure occurs in these situations

1. If the girl dies before the maturity of her scheme, her parents get the money invested in this scheme along with interest. However, for this the death certificate of the girl has to be submitted.

2. If the girl in whose name there is Sukanya Samriddhi account has any serious illness and needs money for treatment, then you can close the account prematurely. But for this you may have to provide proof related to your daughter’s illness and treatment. But this facility is available after 5 years.

3. If the parents or legal guardians of the girl in whose name the Sukanya Samriddhi account has been opened dies before the account matures, the account can be closed midway.

4. Even if you give up your Indian citizenship, your account is considered closed. In such a situation, the entire money is returned after adding interest. But if you have settled in another country but have not given up Indian citizenship, then this account can be continued till maturity.

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The post SSY Rules: Invest after knowing these rules of Sukanya Samriddhi Yojana, if you do not understand then you may regret later. first appeared on Rightsofemployees.com.