PPF Withdrawal Rules on Partial or Complete Withdrawal

Did you know that the Public Provident Fund (PPF) was introduced in 1968 to help individuals build their savings? It not only offers tax benefits on the interest earned but also serves as a reliable way to grow your money. With an interest rate of 7.1%, it's essential to understand the withdrawal rules associated with PPF.

This blog post will walk you through the options for both complete and partial withdrawals, helping you make informed decisions about your financial future.

Rules of PPF Withdrawal 

The PPF withdrawal rules differentiate based on whether you access your funds partially during the tenure or completely after maturity:

What is Partial Withdrawal of PPF?

As an investor, you can make your first partial withdrawal after completing 7 years from the end of the financial year in which you made your initial deposit. However, the main question that will come to your mind is how much PF can be withdrawn during this period. 

Well, you can withdraw up to 50% of the balance available at the end of the 4th year preceding the withdrawal year. For example, if you request a partial withdrawal in 2025, you can withdraw up to 50% of your balance as it was on 31st March 2024, provided your account was opened before 2019. 

This partial withdrawal facility is especially useful for meeting short-term financial needs without closing your account.

What is PPF Complete Withdrawal?

You can make a complete withdrawal from your PPF account only after the maturity period of 15 years. At maturity, you will have three options:

1. You can withdraw the entire amount and close your account

2. Extend your account for blocks of 5 years with continued deposits

3. You can extend without making additional deposits while continuing to earn interest

During the extension period, you gain more flexibility with your withdrawals. You can make one withdrawal each year without any limit on the amount. This makes your PPF more accessible while still getting its tax benefits.

What is the Process to Withdraw the PPF Amount?

There are two ways in which you can withdraw PPF amount- offline and offline. Here’s how to withdraw PF amount offline- 

- Visit your bank or post office branch

- Submit Form C (partial withdrawal)

- Provide your PPF passbook and identity proof

Here’s how to withdraw PF amount online-

- Log into your internet banking

- Go to the PPF section

- Select withdrawal option and amount

- Complete verification (sometimes will require you to visit branch)

Final Thoughts

The PPF partial withdrawal rules offer you flexibility while maintaining the long-term savings discipline that makes PPF an excellent investment option. Before making any withdrawal, it's important to carefully assess your financial needs and understand how it will impact your overall savings.

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