New Delhi: Nowadays, people are more prone to invest their money in some scheme than to keep it in the bank to maximise their profit. Among the many available investment options, the Public Provident Fund (PPF) has emerged as a popular choice for the common people. It has become a popular investment scheme among investors thanks to its multiple investor-friendly features and also because it is backed by the government. If you are someone looking to invest in PPF, here are some things that you should know before going ahead.
Can I close PPF after 5 years?
The maturity period of a PPF account is 15 years and the same can be extended within one year of maturity for a further 5 years and so on. However, it must be remembered that premature closure is not allowed before 15 years.
Is PPF withdrawal taxable after 5 years?
One can withdraw from a PPF account when the account has been operational for at least a tenure of five years. It enables the account users to retrieve a part of their invested money. Also, the users can keep the account operational and enjoy the compounded interest advantages. It must be kept in mind that an amount can be prematurely withdrawn only after 5 years. Also, one should remember that early withdrawal may result in a penalty or loss of interest income.
How can I withdraw money from my PPF account online?
To withdraw money from the PPF account, one needs to follow the below-mentioned process:
- First, log in to the online banking platform and go to the PPF section.
- The portal will show if the person is eligible to withdraw the amount.
- Then download the PPF withdrawal form called Form C. Fill out the form and then submit it.
- The bank and the PPF office will verify the details.
- Once they confirm, the amount will be credited to the savings account of the account holder.
