Centre-backed Public Provident Fund (PPF), which currently has 7.21 percent interest rate, is one of the high-yielding small-saving schemes.
An account-holder can close one's account before the maturity period in certain cases although it has a maturity period of 15 years.
PPF account-holders can close the account subject to fulfillment of certain terms and conditions, provided the account has completed five complete financial years, according to the PPF withdrawal rule.
PPF account-holders can withdraw a complete amount if the account-holder, its life partner or any of the dependents (parents or children) faces life threatening disease. The PPF account closure is also allowed in case the account-holder needs money for higher studies for himself or for its children.
In case of premature PPF account closure, one will get 1 percent lesser PPF interest rate on one's money and premature PPF account closure is allowed only when the PPF account has completed five complete financial years. However, in the case of death of the PPF account-holder, the nominee is allowed for 100 percent PPF withdrawal even when the account is less than five year old.
Here are four conditions when PPF account can be closed before maturity
> Death of the PPF account-holder
> Change of residential address of the PPF account-holder
> In case of life threatening disease to the PPF account-holder, life partner of the account-holder or any of the dependents of the account-holder
> For higher studies of PPF account-holder or its children
The PPF account is eligible for withdrawal when the account has completed five full financial years barring death of the PPF account-holder.
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