The Public Provident Fund (PPF) is an investment instrument that allows individuals to save for the future. A user must submit an amount, similar to a fixed deposit account, but on a monthly basis until maturity. Aside from that, users receive interest on the principal amount that can be collected at the time of the PPF account’s maturity.
After maturity, the entire amount deposited into the PPF account can be withdrawn, while partial withdrawals are also possible, but only after 6 years. Partial withdrawal is permitted when an individual meets the government’s criteria.
In this blog, we will learn more about the public provident fund withdrawal rules and how to withdraw the amount.
What are PPF Withdrawal Rules on Extension?
If a person wishes to extend the maturity of his or her PPF account, he or she can do so in a block of 5 years. Furthermore, if the entire amount is not withdrawn from the PPF account after maturity, the tenure will be automatically extended.
- Withdrawal after extension
If the PPF account holder wishes to extend the PPF account’s tenure in the block of 5 years, he or she can withdraw the amount but only before the extension begins.
- PPF extension with an additional contribution
PPF account holders can extend the tenure of their PPF account by continuing to contribute to it. Extending the tenure will also earn them interest on the deposited amount.
- Withdrawal after PPF extension with a contribution
Following the extension of the PPF account with contribution, the account holder is given the option to withdraw 60% of the balance at the time of extension over a 5-year period. It should be noted that only one withdrawal per year is permitted.
How to Withdraw Money from a PPF Account?
The entire amount from the PPF account can be withdrawn after the completion of the maturity period and partial withdrawal is allowed after the completion of 6 years. The steps to withdraw money from your PPF account are as follows:
- Fill the Form C
- Fill out the form with all of the necessary information, such as the PPF account number, the amount to be withdrawn, and the total number of financial years completed since the account was opened
- Submit the form along with the PPF passbook
- The bank will then double-check all of the information on the form, as well as the account holder’s eligibility for the amount withdrawal
- Following the completion of the aforementioned process, the amount will be credited to the account holder’s savings account