{"id":7168,"date":"2017-09-07T08:50:19","date_gmt":"2017-09-07T03:20:19","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=7168"},"modified":"2017-09-07T10:37:49","modified_gmt":"2017-09-07T05:07:49","slug":"ppf-premature-closure","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/ppf-premature-closure\/","title":{"rendered":"PPF Premature Closure: Rules and Penalty"},"content":{"rendered":"
\"PPF
PPF – Rules for Early Account Closure<\/strong><\/figcaption><\/figure>\n

Government of India notified<\/a> that PPF account holders can now close their PPF accounts prematurely in certain extreme cases with penalty<\/strong>. We explain you the conditions and the penalty impact.<\/p>\n

When can PPF Account \u00a0be Closed before Maturity?<\/h2>\n

The PPF account can be closed before maturity if it has been operation for at least 5 financial years<\/strong> and fulfils any of the two listed conditions.<\/p>\n

    \n
  1. Treatment of serious ailments or life-threatening diseases<\/strong> of the account holder, spouse, dependent children or parents. You will need to produce relevant supporting documents from competent medical authority.<\/li>\n
  2. Higher education of the account holder:<\/strong> In this case you will need to produce documents and fee bills showing confirmation of admission in a recognized institution in India or abroad<\/li>\n<\/ol>\n

    Other than this you cannot close your PPF account prematurely. However PPF account can be closed anytime on death of the account holder<\/strong>.<\/p>\n

    \n

    Also Read:<\/strong> All you wanted to know about PPF<\/a><\/p>\n<\/blockquote>\n

    Penalty for Premature Closure of PPF<\/h2>\n

    The early closure of PPF comes with\u00a0penalty. You will get 1% less interest than the notified interest rate every year since the account was open.<\/strong> This turns out to be hefty if the account has been operational since long. The table gives a case which shows the penalty for this premature closure.<\/p>\n

    \"PPF<\/a>
    PPF Premature Closure – Penalty Illustration<\/strong> (Click on image to Enlarge)<\/em><\/figcaption><\/figure>\n

    As can be seen the effective penalty could be as high as 4% to 8% depending on tenure of your deposit and how much you have deposited in early years.<\/p>\n

    \n

    Download<\/strong>\u00a0Excel based PPF Calculator for\u00a0Maturity, Loan & Partial Withdrawal<\/a><\/p>\n<\/blockquote>\n

    Things to Note:<\/h3>\n

    PPF is almost risk free and tax free investment and one of the best fixed income investments. Even before this notification you could make partial withdrawals or take loan against PPF balance – so you should first try those options. Premature withdrawal of PPF should be your last option.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

    Government of India notified that PPF account holders can now close their PPF accounts prematurely in certain extreme cases with penalty. We explain you the conditions and the penalty impact. When can PPF Account \u00a0be Closed before Maturity? The PPF account can be closed before maturity if it has been operation for at least 5 […]<\/p>\n","protected":false},"author":1,"featured_media":7167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[30,3013,400,393],"tags":[26,3026,3025,398],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure.png",573,370,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure-300x194.png",300,194,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure.png",573,370,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure.png",573,370,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure.png",573,370,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure.png",573,370,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/06\/PPF-Rules-for-Early-Account-Closure.png",120,77,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":3,"uagb_excerpt":"Government of India notified that PPF account holders can now close their PPF accounts prematurely in certain extreme cases with penalty. We explain you the conditions and the penalty impact. When can PPF Account \u00a0be Closed before Maturity? The PPF account can be closed before maturity if it has been operation for at least 5…","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/7168"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=7168"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/7168\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/7167"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=7168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=7168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=7168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}