PPF Lock-In Period
Public Provident Fund comes with a specified lock-in-period which means the account holders can't withdraw fund from their account before the completion of this period. Even though it's currently 15 years, it is expected to go up by 5 to 20 years.
The customer has the option to choose their saving period and the term can be either 15 years or 20 years. The government expects to bring in an increasing number of people by increasing the rate of interest for tenures that extend to 20 years.
In case the customer wishes to invest in PPF for 20 years, the tax benefits that follow are expected to be higher.
The government is contemplating this decision so that it can make sure that infrastructure funding can have a steady source.
PPF Account Features
The main features of the PPF scheme are mentioned below:
- Post completing seven years, partial withdrawal facility is provided.
- Tax benefits can be availed.
- Risks are minimal as the scheme is offered by the government.
- Joint accounts cannot be opened.
- Nominations can be added to the account.
- Deposits can be made via online fund transfer, demand draft, cheque, or cash.
- Deposit must be made at least once a year.
- You can invest between Rs.500 and Rs.1.5 lakh in year.
- The tenure of the scheme is 15 years.
Premature Closure – Penalty
Under the scheme, premature closure is allowed. However, a penalty of 1% will be levied in the case of premature closure. However, partial withdrawal facility is allowed once you have invested in the scheme for seven years.
PPF Top Pages
- PPF
- PPF Balance
- PPF Online Payment
- PPF Deposit Limit
- PPF Calculator
- PPF Account Opening Form
- How to Open PPF Account Online
- PPF Interest Rate
- PPF Withdrawal Rules
- Check PPF Account Statement Online
- Change Nominee Name in PPF
- Axis Bank PPF Account
- Bank of Baroda PPF Account
- Central Bank of India PPF Account
- Union Bank ppf account
- PPF Deduction
- PPF Closure Form
- PPF claim Status Online
FAQs on PPF Lock-In Period
- What are the maximum tax benefits that can be availed under the scheme?
The maximum tax benefits that can be availed under the scheme is Rs.1.50 lakh in a year.
- What is the minimum amount that must be deposited to open a PPF account?
The minimum amount that must be deposited to open a PPF account is Rs.100.
- Can NRIs open a PPF account?
No, NRIs are not permitted to open a PPF account.
- Can HUFs open a PPF account?
No, HUFs are not permitted to open a PPF account.
- Is it possible to open a PPF account online?
Yes, most banks provide the option to open a PPF account online.
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