Public Provident Fund (PPF) is a great investment option. There are many benefits of investing in it. It is not only safe but you also get the benefit of tax exemption by investing in it.
The risk in investing in PPF is almost zero as it is completely secured by the government. However, it has the longest lock-in period among tax saving instruments.
lock-in period
- The lock-in period for PPF is 15 years.
- You are eligible for the loan after 3 years of account opening.
- Partial withdrawal can be done after 6 years.
- It can be extended for another 5 years after the first 15 years of investment.
- There is no restriction on further account expansion.
- The account can be continued even without investment.
What happens after the death of the account holder?
- After the death of the PPF account holder, the nominee cannot continue with this account.
- The nominee has to withdraw money by filling Form G.
- If there is no nominee, the legal heir will have the right over him.
- No succession certificate is required for an amount less than Rs. 1,00,000.
- What happens if the account holder dies within 5 years of opening the PPF account? In such a situation, the nominee gets the money.
- The nominee has to submit Form G. After this the amount will be deposited in the account of the nominee after successful verification by the respective offices.
- The account holder will get interest for all the months in which he has deposited the money (except the previous month). However, the nominee cannot deposit money in this PPF account.
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