Now big news is coming out regarding the Public Provident Fund scheme. In today’s time, PPF is considered one of the best investment options. In this, you get good returns along with hefty interest, but now if you want to withdraw money from your PPF account before maturity, then know what has changed in the rules-

You get the benefit of compounding interest

In the Public Provident Fund scheme, you get 7.1 percent return on the basis of compounding. Many times it happens that you invest money, but have to withdraw this money in emergency, so today we will tell you how you can withdraw money from the account before maturity.

Can I withdraw money from the account before maturity?

Many times it has been seen that if you withdraw money before the time, then you are asked the reason for withdrawing the money and still you are not given the full amount. Public Provident Fund also has its own rules, according to its rules, you can withdraw money after completion of 6 years and can also get it closed after completion of 5 years. If you want to withdraw some money before 6 years, then you must have a valid reason for withdrawing, only then you can withdraw your money.

When can I withdraw money?

You must have a valid reason for withdrawing money. Like you want to get treatment for any disease or you can withdraw money for the treatment of your family. Apart from this, you can also withdraw money for children’s education and children’s marriage.

Rules of PPF Withdrawal

1. For withdrawing money in PPF, you have to go to the official website of the bank.
2. Then you have to download Form C from the official website of the bank.
3. After filling the form, get it deposited in the bank.
4. And also show your PPF account to the bank.
5. After this the bank will give 50 percent of the money deposited in your account.

You can start with 500 rupees, let us tell you that in this scheme a person can start with 500 rupees. At the same time, in the financial year, you can invest a maximum of Rs 1.5 lakh in it. Not only this, in PPF you also get the benefit of loan and partial withdrawal facility after a certain period.

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Thus, a person can start a PPF account with as little as Rs 500, while the maximum amount that can be invested in it in a financial year is Rs 1.5 lakh. Not only this, the PPF scheme also gives the facility of loan and partial withdrawal to the account holder after a period of time.

Benefits of PPF Scheme

Being a safe plan, PPF account offers many benefits including tax deductions.

1. Eligibility Criteria

PPF account is equally available to all. Any person can open SBI PPF account in his own name. In case of a minor, it can be opened on behalf of the minor child through parents and guardians.

2. Investment limit

As mentioned earlier, the minimum amount that can be invested under this scheme is Rs.500 while the maximum amount is Rs.1.5 lakh per annum. The policyholder can invest by paying a lump sum amount or it can be done in 12 easy installments in a year.

3. Long policy term

The maximum term for a PPF account is 15 years. However, after the maturity of the policy, the policyholder can extend the term of the account for another 5 years

4. Best interest rates

The PPF interest rate is decided by the Central Government every quarter. The current rate of interest is 7.1% per annum, calculated on the minimum balance in the account and reckoned from the 5th day till the end of the month

5. Tax Exemption

SBI PPF accounts allow tax benefits under section 80C of the Income Tax Act. The returns received under this scheme are also tax free.

6. Easy Loan and Withdrawal Facility

The PPF scheme allows easy availability of loans and withdrawals based on the age of the account as well as the balance available in the PPF account.

7. Nominee facility

PPF account is available with nominee facility. Policyholder can nominate one or more person as nominee and also decide how much to pay to different nominees

8. Account Transfer

Another advantage of PPF account is that it allows the policyholder to transfer the account. So, you can transfer your PPF account to any other branch of your bank, to any other post office or to a new bank without any charges.

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