Any Indian can open PPF account. But can you close the PPF account without maturity?
Public Provident Fund ie PPF is one of the small savings schemes. This account matures in 15 years. After its maturity, you can close the account by withdrawing the amount deposited in it. However, if you wish, you can extend your account for five years with or without contribution. Any Indian can open PPF account. But can you close the PPF account without maturity. Let’s know everything about it.
In the event of illness of the PPF account holder, spouse and their children, the entire amount of PPF can be withdrawn. You can also withdraw full money from PPF account in case of children’s education. If you become an NRI then in this situation also you can close your PPF account.
when can you close
PPF account can be closed only after completion of 5 years of opening. On doing so, interest of 1% will be deducted from the date of account opening till the date of closure of the account. If the account holder dies before the maturity of the PPF account, then the nominee can withdraw the entire amount. Even if the account has not been opened for five years. The account is closed after the death of the account holder. Nominee cannot continue that account any further.
Apply here to close
To close the account, you have to fill the form and submit it to the post office or bank where you have your PPF account. Photocopy of passbook and original passbook are also required. If the PPF account has been closed due to the death of the account holder, then in this case the interest on it is paid till the end of the month in which the account is closed.
how much interest
PPF account can be opened in post offices and banks. The current interest rate on this is 7.1 percent per annum. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in PPF in a financial year. A person can open only one PPF account in his own name. PPF is a better option for those aiming to build funds for the future.
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