Quick Answer: Can I Close My PPF Account After 1 Year?

Which PPF account is best?

List of Banks Offering PPF AccountsAllahabad Bank.Corporation Bank.Bank of Baroda.HDFC Bank.ICICI Bank.Axis Bank.Kotak Mahindra Bank.State Bank of India and its subsidiaries which include the following –.

Can I close my PPF account after 3 years?

In 2016, rules were amended and premature closure of PPF accounts was made possible by allowing premature closure of the PPF account anytime after five years of the opening of the account, in extreme circumstances like life threatening disease treatment of the account holder, spouse or dependent children or parents or …

What happens to PPF account if bank closes?

The PPF account is more secure than fixed deposit of saving bank account. Your money remains with the government of India. Even if your bank goes bust, Your PPF money would remain safe. It safe until the government goes bankrupt.

Can PPF be withdrawn?

Yes, you can make partial withdrawals from your PPF account after five years. However, the maximum amount you can withdraw is capped at the lower of the two – 50% of the balance at the end of the fourth financial year or 50% of the balance at the end of the preceding year.

Is HDFC Bank safe for PPF?

Risk-free, guaranteed returns: The Public Provident Fund is backed by the Government of India. So, one of the most significant PPF account benefits is that it is entirely risk-free. The returns, too, are guaranteed by the government.

How much I will get in PPF after 15 years?

1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

What happens if you dont pay PPF?

If you do not invest the amount due for the month of May on time, then you will be charged a penalty. In a PPF, if you do not invest a minimum amount of Rs 500 in a single financial year, your account will become inactive. … As per the India Post website, default fee of Rs 1 for every Rs 100 is charged.

What is the minimum lock in period for PPF account?

15 yearsA PPF account comes with a specified lock-in period of 15 years. However, you should keep in mind that in case of PPF, the lock-in period in not calculated from the date of opening the account. Instead, it’s calculated from the date of end of the financial year in which the first deposit was made in the account.

Can I close PPF account after 7 years?

Rules of withdrawal from PPF You can withdraw from your PPF starting from the seventh year. So, if you go back to our above-mentioned example, for an account that was opened in 2014-15, the withdrawal facility will start from the April 1, 2020.

How can I close my PPF account?

In order to reactivate a discontinued account, the subscriber will require to visit and submit a written application to the post office or bank branch where the account is held. You will have to pay Rs 500 as an arrear payment for each year and a penalty of Rs 50 for each year default.

Is PPF better than LIC?

The Public Provident Fund tends to provide a far superior rate of returns compared to an LIC policy like Jeevan Anand. What you should do is invest in the PPF and take a term policy online, which is cheaper and faster. In the term policy you do not get your money back, but, you are provided with solid insurance.

Can I have 2 PPF accounts?

For an individual, only one PPF account is allowed to be opened in one’s name. However, there are chances that one ends up holding multiple PPF accounts in one’s name. It could also include holding one account in the post office and one in the bank.