What is PPF Lock-in Period? Know Here
The PPF Locking Period is a time for which the money invested by the investor in the Public Provident Fund (PPF) is locked and the account holder cannot withdraw it before the completion of the PPF Locking period.
For now, the PPF lock in period is 15 years, which can be increased by the investor in the block of 5 years. This is the time for which an investor has opened his/her PPF account and he/she cannot break the account before the completion of the tenure.
PPF Minimum Lock In Period
Currently, the PPF account locking period in SBI and all other banks is 15 years to hold PPF investment amount. This is the time before which, an investor cannot terminate his/her account under any circumstances except the death of the account holder.
However, the Government of India has given the option to partially withdraw money after the completion of 5 financial years, under certain cases like Child Education, Health Emergency, Chronic disease etc. But to avail this facility, the account holder will have to submit proper documents which prove that the account holder is going under such a case and he/she needs money for it.
However, in this case of withdrawal before completion of PPF Lock in period, 1% interest will be deducted from the annual PPF interest rate as a penalty.
PPF Lock in period in SBI
State Bank of India (SBI) provides the option of opening the PPF account. The minimum lock in period in SBI is 15 years which can be increased in batches of 5 years.
SBI also provides the facility of partial withdrawal to his/her customers after completion of 5 years of opening of PPF account under certain circumstances after deducting the penalty.
Check SBI PPF Articles
PPF Lock in period in HDFC
If an investor opens his/her PPF account in HDFC Bank, then he/she can choose the PPF Lock in period in HDFC at the time of opening of account.
This PPF Lock-in period HDFC can range starting from 15 years and can be increased indefinitely in a group of 5 years.
HDFC also follows the guidelines given by RBI and gives the facility to his/her investors to withdraw some money from their PPF account after they have completed 5 years of investing in it.
Read HDFC PPF Articles
The same PPF Lock In Rules are applied to Post Office, ICICI Bank, Axis Bank, UBI and all other banks.
FAQs Related to PPF Locking Period 2022
After how many years account holders are eligible to withdraw the money from PPF accounts for 20 years of tenure?
In case, the account holder has increased the PPF Lock in period from 15 years to 20 years, then the tenure of partial withdrawal is also increased by two years. So, he/she would be eligible to withdraw after 7 financial years.
What is the limit of PPF Locking Period extension?
The PPF account holder has the option to extend maturity of PPF account from 15 years to more years in the blocks of 5 years, that means the tenure for PPF account can be 15 years, 20 years, 25 years, 30 years etc.