PPF Withdrawal Rules: Withdraw PPF Partially & Fully

1. PPF Extension without Contributions

When a PPF account matures, investors have the option to keep the account active without making any further contributions instead of closing it. This allows you to earn interest on the balance amount until you close the account. 

2. PPF Extension with Contributions

If you wish to keep your account active and continue making contributions, you can do so by opting for an extension of five years. Note that there is no limit on the number of times you can take such extensions. However, they must be in blocks of five years. 

If you want to extend the duration of your PPF investment, all you have to do is fill out the required form and submit it to your bank/post office. However, to keep your account active, you will have to submit this form within a year of your account’s maturity.

Also note that once you submit the request for an extension with contributions, you cannot withdraw the request in the future. 

What is the Withdrawal Limit for PPF Account Complete Withdrawal?

You can make a complete withdrawal from your PPF account once the 15-year lock-in period ends. However, the PPF premature withdrawal rules state that you can make a complete withdrawal before the end of tenor only under certain circumstances, as listed below:

• Treat a life-threatening disease (applicable only to the account holder, their parents, spouse, or dependent children)

• Pay for your or your dependent children’s higher education

• Change of residency status

Note that you cannot prematurely close the account before the end of 5 years from the end of 1 year from the date of account opening. This means that you can prematurely close the account only after completing 6 years, i.e., from the seventh year. 

Note that if you go for a premature PPF account closure, your interest rate will reduce by 1%. 

What are the Withdrawal Limits for PPF Accounts Before Maturity?

As per the PPF withdrawal rules, you get a partial payout only if your account has completed five years of investment. You can take out 50% of the corpus available in your PPF account at the end of the fourth year or the preceding year, whichever is lower.

Moreover, PPF partial withdrawal rules also state that you can only make such transactions once in a financial year. Additionally, if you have an outstanding loan against your PPF, you will need to repay the same to be eligible for a partial withdrawal.

To make a partial withdrawal, you will be required to submit Form 2. If you are making a partial withdrawal from the PPF account in the name of a minor or a person of unsound mind, you will need to submit a declaration.

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