PPF scheme is a good option for those who want to save without any risk. Public Provident Fund i.e. PPF is a very good scheme for those who want to earn a big amount without taking any risk. It has a timeline of 15 years and anyone can invest. At present, this government scheme is getting interest at the rate of 7.1 percent.
This scheme with EEE category also saves tax in three ways. In such a situation, suppose if you started investing in this scheme 2 years ago and now you do not want to continue this scheme. And if you want to close the account by withdrawing all the money, then is there any way to close the PPF account in the middle? Let us know about the rules related to this.
When can you make a partial withdrawal
Let us tell you that under this scheme, customers have to invest for 15 years. That is, after 15 years you can withdraw this amount with interest. However, if you need money before 15 years, you can make a partial withdrawal from the account. The facility of partial withdrawal is available after 6 years. In such a situation, you can make partial withdrawals up to 50 percent.
Let us tell you that before the sixth year, you get the facility of loan on PPF. You can avail of the loan facility on your PPF account after completion of one year from the date of initial deposit and till the end of the fifth year. Meanwhile, you can take up to 25% of the total deposit amount as a loan.
When can you do early account closing
PPF account can be closed even after 5 years under special circumstances. In case of premature closure, the money will be returned after deducting 1% interest from the date of opening the account. Know under what circumstances it can be closed prematurely-
If there is a medical emergency and you need money for the treatment of yourself, wife or children, then you can completely close the account after 5 years and withdraw the amount deposited.
Apart from this, the account holder can close the PPF prematurely after 5 years for his own higher education or the higher education of his children. If you are going abroad, you can also close the PPF account, in such a situation you can withdraw the entire amount.
If the account holder dies for any reason, the account is closed before it matures. In such a situation, the nominee person or the heir of the person does not get the facility to continue the account. In such cases, interest is paid till the end of the month immediately preceding the month in which the account is closed.
What is the method of pre-mature closure
To pre-maturely close the PPF account, you have to apply to the home branch of the bank account. In this, you have to tell why you are closing the account. For this, you will also have to submit some documents along with the application. It should contain a copy of the PPF passbook.
Apart from this, if you are closing the account for treatment of illness, then documents given by the medical authority will be required. On the other hand, if you are closing the account for higher education, then fee receipt, book bill and documents confirming admission are required.