Depositing money stopped in PPF account, this can be a huge loss

Public Provident Fund (PPF) is considered to be the best option for tax saving and meeting future needs.

Public Provident Fund (PPF) is considered to be the best option for tax saving and meeting future needs . This is a long-term investment, i.e., through investing in this 15-year plan, children’s education, marriage and other personal needs can be met.

This scheme backed by the Government of India gives good interest. You can also withdraw its money before 15 years. But here there are some conditions of the lockin period. But many times we stop depositing money in it after investing few years. This causes you many disadvantages. Along with this, even if you withdraw money before maturity, you have to comply with many conditions. Let us know about these rules of PPF.

These conditions are necessary for withdrawal

  • According to the rules, if there is a change in the residential address of the PPF account holder. Especially if he is leaving the state, then the facility of closing the account is available.
  • If the life partner of the account holder or any dependent of the account holder gets a life-threatening illness, then he can close the account by withdrawing the entire amount.
  • Even if the account holder needs money for higher education of his/her child, he/she can take pre-mature delivery.
  • The biggest loss on premature closure of PPF account is on the interest you get.
  • You will get an interest rate of 1 percent less than the prevailing interest rate. If a person was getting 8.5% interest on the current contribution, but if he closes the PPF account prematurely, then he will get interest only up to 7.5%.
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Article first Appeared on Informalnewz

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