Benefits Of PPF Account: Take Loan 3 Years After Opening Account, Learn When Partial Withdrawal Can Be Done

There are many benefits of investing in PPF. It is not only safe but you also get the benefit of tax exemption when you invest in it. 

Benefits Of PPF Account | Representative Image

Public Provident Fund (PPF) is a great investment option. There are many benefits of investing in it. It is not only safe but you also get the benefit of tax exemption when you invest in it.

The risk in investing in PPF is almost zero as it is fully protected by the government.  However, its lock-in period is the highest among tax-saving instruments.

Lock-in Period

• The lock-in period for PPF is 15 years.
• You are eligible for a loan 3 years after opening the account.
• A partial withdrawal can be done after 6 years.
• After the first 15 years of investment, it can be extended for another 5 years.
• There is no restriction on further account extension.
• The account can be continued even without investment.

What Happens After Death Of Account Holder?

• After the death of the PPF account holder, the nominee cannot continue this account.
• The nominee has to withdraw the money by filling out Form G.
• In case there is no nominee, the legal heir will have the right over it.
• A succession certificate is not required for an amount less than Rs. 1,00,000.
• What happens if the account holder dies within 5 years of opening a PPF account? In such a situation, the nominee gets the money.
• The nominee has to submit Form G. After this, the amount will be deposited in the account of the nominee after successful scrutiny by the respective offices.
• The account holder will get interest for all the months in which they have deposited money (except for the last month). However, the nominee cannot deposit money in this PPF account.