Partial withdrawal can be done with PPF, know what are the rules and how to close the account before time

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With Public Provident Fund (PPF) savings scheme, investors can make a lot of money on long term investments. PPF has a maturity of 15 years, but investors are allowed to make partial withdrawals. An investor may also request premature closure in certain situations. Interest on PPF schemes is paid by the government every quarter. In the first quarter of FY 2021, the interest rate on PPF was fixed at 7.1% from 1 April to 31 June.

Partial clearance and closure

Generally, withdrawals can be made after the maturity period of 15 years from the date of account opening. However, partial withdrawal can be done at the end of the 6th year from the date of account opening. An investor can prematurely close a PPF account for medical emergency or educational needs.

Premature closure

You can close PPF account before maturity date. The PPF account is allowed to be closed after five years from the end of that year or before the maturity date. However, premature closure will be allowed only when the investor will need the money for treatment of diseases after showing proper documents to prove the medical condition.

In other circumstances, premature closure is allowed if the investor or the account holder requires money for higher education in a recognized institution in India or abroad. PPF falls under the exempt-exempt-exempt (EEE) tax benefit category.

It is worth mentioning that the government has post office branches for small savings schemes like Public Provident Fund (PPF), Monthly Income Scheme (Post Office MIS), National Savings Letter (NSC), Kisan Vikas Patra (KVP) and Senior Citizen Savings Scheme (SCSS). Has given facility to This will help in facilitating such schemes to the branches of 1.31 lakh post offices in rural areas.