The Public Provident Fund (PPF) is considered a great savings tool and is also one of the most popular programs among the people. The duration of the PPF is 15 years.
If you’ve invested in PPF too, here are a few things you need to know.
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When can the PPF account be closed?
The PPF account holder may withdraw funds prior to the due date in the event of treatment for a life-threatening illness of the account holder, their spouse, or dependent children or parents, provided supporting documentation and medical reports are presented to the treating medical authority.
At the same time, the account can also be closed for the higher education of the account holder or dependent children upon submission of documents and fee statements in the confirmation of admission to a recognized university in India or abroad.
If the residence status of the account holder changes, the PPF account can also be closed. The account holder must provide a copy of the passport and visa or income tax return unless an account under this scheme is closed within five years of the end of the year in which the account was opened.
Provided that in the event of such early termination of the account, interest will be paid at a rate that is one percent lower than the rate at which interest has been credited to the account from time to time since the account was opened, or the date the renewal of the account, as the case may be.
How can you close the PPF account if the account holder dies?
If the account holder dies before the PPF account is due, the nominee can withdraw the money. In such a situation, the condition of completing 5 years of the account will also be refused.
In other words, upon the death of the account holder, the PPF account will be closed. The money is given to the nominee or the legal heir. However, the same account may not be carried forward.
It should be noted that the balance on the account of the deceased account holder earns interest up to the end of the month preceding the month in which the creditable balance is paid out to the nominee or the legal heir.
Who can open a PPF account?
Any Indian citizen can open a PPF account. The account can also be opened in the name of a minor. The account can be opened with a minimum deposit of Rs 500 and thereafter any amount in multiples of fifty rupees can be deposited.
