Public Provident Fund or PPF is an investment cum tax saving tool. In the long-term, PPF interest rate (currently 7.1 per cent) helps an investor beat the inflation too. So, among the risk-free investment options, PPF is one of the most favoured options by investors who have low risk appetite. PPF account has maturity period 0f 15 years, however, for information to the PPF account holders, PPF withdrawal rules allow an investor to fish out money before the maturity period. It also allows PPF account holders to take loan against PPF at mere 1 per cent interest rate.
Speaking on the PPF withdrawal rules before maturity of 15 years SEBI registered tax and investment expert Jirtendra Solanki said, "PPF withdrawal is allowed from the PPF account from 6th year of the PPF account opening. A PPF account holder, who is looking to raise money, PPF account can be a good option for him or her. Provided the PPF account is more than five years old."
On how much PPF withdrawal is allowed before the maturity of 15 years Solanki said that PPF withdrawal limit can be either first four years PPF balance or last four financial year's PPF contribution, whichever is less.
On PPF withdrawal within 5 years, Manikaran Singhal, Founder, goodmoneying.com said, "PPF withdrawal before 5 years is not allowed but the account holder is allowed to take loan against PPF account if the PPF account is more than 3 years old. The loan against PPF is given at the interest rate of 1 per cent."
