Public Provident Fund: The interest rates on fixed deposits and savings bank accounts are falling. The stock markets remain volatile due to several global factors. In these tricky times, Public Provident Fund is one of the safest ways to grow your money. The only bummer? It comes with a lock-in period of 15 years. So, what happens if you need money in between? Can you make premature withdrawal from SBI PPF account?
The answer to this is that the account holder will have to at least maintain his account for six years. The SBI allows premature withdrawal of money only after the account holder completes six years with the account.
The State Bank of India allows a minimum investment of Rs 500 to open the account. The maximum limit for the PPF deposit is Rs 150000 per annum. The original duration of the lock-in period for a PPF account is 15 years. Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
The rate of interest is determined by Central Government on a quarterly basis. At present, it is 7.90% per annum with effect from 01.10.2019 as per the SBI website.
Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates. Income Tax benefits are available under Sec 88 of IT Act.
Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber. The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charge.
