PPF Account Close: A PPF account cannot be closed before at least 5 years from the date of opening the account. Premature closure of a PPF account before maturity is allowed only under certain conditions, such as medical emergency, need of money for higher education, or becoming an NRI.
PPF Account Close: Public Provident Fund (PPF) is a popular saving scheme among investors across the country . This is because it gives investors great returns without any risk. Currently, PPF is getting interest at the rate of 7.10%. The lock-in period for a Public Provident Fund (PPF) account is 15 years. However, during this time the withdrawal options are very limited. Also, closing the account prematurely is not allowed.
Partial withdrawal option after 5 years
PPF account holders are allowed to withdraw a part of the balance after 5 years from the date of opening the account. You can withdraw up to 50% of the balance at the end of the fourth financial year before withdrawal. Premature closure of a PPF account before maturity is allowed only under certain conditions, such as medical emergencies, need of money for higher education, or becoming an NRI. However, as a penalty for premature closure, 1% of the interest earned is deducted.
Closing the PPF account before 5 years is not allowed
A PPF account cannot be closed at least 5 years before the account was opened. The account holder has to submit Form 5 and supporting documents to the bank or post office where the PPF account is held before closing the account. During pre-closure, the entire amount deposited in the account has to be withdrawn.
How to close PPF account before maturity
- First of all go to the bank or post office where you have your PPF account.
- Fill Form 5, which is the PPF account closure form.
- Submit the required documents stating the reasons for premature closure of your PPF account.
- For medical emergencies, provide medical reports and hospital bills.
- For higher education, submit the admission letter and fee receipts.
- In case of change of residence status (NRI), provide proof like Visa and Passport.
- After verification, the bank/post office will process your application.
- If the information is found to be correct, your PPF account will be closed.
- After this, the balance amount will be transferred to your linked savings account.
- Depending on the bank/post office, this will take 7-10 days to process.
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