Public Provident Fund or PPF is an funding cum tax saving instrument. In the long-term, PPF rate of interest (presently 7.1 per cent) helps an investor beat the inflation too. So, among the many risk-free funding choices, PPF is among the most favoured choices by buyers who’ve low threat urge for food. PPF account has maturity interval 0f 15 years, nevertheless, for data to the PPF account holders, PPF withdrawal guidelines enable an investor to fish out cash earlier than the maturity interval. It additionally permits PPF account holders to take mortgage in opposition to PPF at mere 1 per cent rate of interest.
Speaking on the PPF withdrawal guidelines earlier than maturity of 15 years SEBI registered tax and funding skilled Jirtendra Solanki mentioned, “PPF withdrawal is allowed from the PPF account from 6th year of the PPF account opening. A PPF account holder, who is looking to raise money, PPF account can be a good option for him or her. Provided the PPF account is more than five years old.”
On how a lot PPF withdrawal is allowed earlier than the maturity of 15 years Solanki mentioned that PPF withdrawal restrict might be both first 4 years PPF steadiness or final 4 monetary yr’s PPF contribution, whichever is much less.
On PPF withdrawal inside 5 years, Manikaran Singhal, Founder, goodmoneying.com mentioned, “PPF withdrawal before 5 years is not allowed but the account holder is allowed to take loan against PPF account if the PPF account is more than 3 years old. The loan against PPF is given at the interest rate of 1 per cent.”
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