InvestorQ : How interest will be credited under the new scheme of PPF and how can I withdraw my PPF amount from the account?
Niharika Kamble made post

How interest will be credited under the new scheme of PPF and how can I withdraw my PPF amount from the account?

Answer
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Purvesh answered.
10 months ago


PPF interest shall be credited to the holder’s account at the end of each year. The applicable interest rate that shall be paid on the PPF account is 7.9% per annum. This shall be eligible for a calendar month on the lowest balance at the credit of an account between the close of the fifth day and the end of the month. Interest shall be credited irrespective of the transfer of account during the year.

Withdrawal of PPF amount shall be allowed any time after the expiry of five years from the end of the year in which the account was opened. The account holder can apply for withdrawal using Form-2. However, the amount that could be withdrawn shall not exceed 50% of the amount standing in credit at the end of the fourth year immediately preceding the year o withdrawal or at the end of the preceding year, whichever is lower.

Account-holders are also allowed extension of account as per the new policy. The account holder on the expiry of fifteen years from the end of the year in which the account was opened, may extend his account and continue to make a deposit under paragraph 4 for a further block period of five years by applying to the accounts office in Form-4.