Can You Withdraw PPF Before Maturity? What are the Rules, Know Here

The provident fund is a great investment. As an employee, you gain the benefit of an amount. The employer’s share and the employee’s share are invested in your account with an interest. A lot of people are unsure whether it’s wise to take out the money before it matures. Let’s learn about the guidelines for withdrawing funds and the mechanics of doing so.

The Public Provident Fund (PPF), which is backed by the government, remains one of India’s most dependable long-term investment plans, particularly for prudent investors. Despite its 15 year lock-in period, the PPF does allow partial withdrawals prior to maturity under certain circumstances. It is not only secure, but it also has tax advantages and a set interest rate of 7.1% between October and December 2025.

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You can withdraw money from your account, but you cannot withdraw in full. The rule is to withdraw a partial amount before the maturity. The regulations governing PPF withdrawals are established by the government, outlining when and how you may access your invested money. These regulations fall into three main categories; those are, withdrawal after maturity, premature closure and partial withdrawal.

The whole amount may be taken out and the account closed, or the account may be prolonged, upon the conclusion of the 15 year term of a PPF account.

Partial Withdrawal: 

The maximum amount you may withdraw is half of the account balance at the end of the fourth year of the account or half of the balance at the end of the year before the withdrawal, whichever is smaller. These regulations were put in place by the government to safeguard your money and prevent your whole deposit from being lost at once. This approach allows you to take out some money in the event of an emergency, but the remainder of your funds is kept secure.

Premature Closure: 

The government has allowed the possibility of closing your PPF account entirely after five years under certain conditions since 2016. You may only use this option to cover the costs of your own or your children’s higher education or for the treatment of a serious condition.

What is the Penalty?

You will be subject to a minor penalty of 1% lower interest if you close the entire account, which means that you will receive 1% less interest than the stated interest rate of PPF.

(Disclaimer: Given the input is on an information basis, please seek professional advice.)