Withdrawing PPF Funds Early? Know the new Changes in Rules
This is a significant news for you if you have money invested in the Public Provident Fund (PPF) Program, Read to know about the changes in rules!
This is significant news for you if you have money invested in the Public Provident Fund (PPF) Program. The Central Government occasionally makes statements about various government programmes. Now, a huge news is coming out regarding the Public Provident Fund Program. PPF investments are thought to be the greatest choice right now. It offers high interest rates in addition to significant returns. But, you should be aware of any modifications to the restrictions if you wish to withdraw funds from your PPF account prior to maturity.
You receive a compounded return of 7.1 percent in the Public Provident Fund Program. The money you invest frequently could need to be withdrawn in an emergency. In this case, we’ll explain to you how to take money out of your account before it matures.
Can you withdraw money from your account before maturity?
It has been observed that if you withdraw money before the stipulated time, you are asked for a reason and yet you may not receive the full amount. The Public Provident Fund Scheme also has its own rules. According to the rules, you can withdraw money from your account after completing 6 years of investment. However, you can withdraw only 50 percent of the balance in your account at the end of the 4th year, preceding the year in which you want to withdraw the money. For example, if you want to withdraw money in 2023, you can withdraw only 50 percent of the balance in your account as of March 31, 2019.
In addition, you have the option of withdrawing your full balance in the event of an emergency, such as a medical procedure, higher education, or marriage. You must provide supporting documentation for this.
In conclusion, you should be informed of the laws and requirements if you want to withdraw money from your PPF account before maturity. It is crucial to remember that premature withdrawal may result in penalties, thus it should only be done in cases of extreme necessity.