SBI PPF Account: Is premature withdrawal allowed in SBI Public Provident Fund? Here is what onlinesbi.com says

SBI PPF Account: The Public Provident Fund (PPF) is one of the most preferred long-term risk-free investment tools available in the market. As the PPF account can be opened in any of the banks operating in India, the State Bank of India (SBI) attracts a large number of PPF account openings as it is the largest commercial bank in India. If you are also planning to open a Public Provident Fund (PPF) with the State Bank of India (SBI) and want to know the terms and conditions for opening the account? It is always advisable to go to the official website of the SBI — onlinesbi.com or sbi.co.in — an gather information in regard to the SBI PPF account. However, after fishing out information on the SBI PPF account on the SBI website, we came across some important information in regard to the SBI Public Provident Scheme.

Some of the important information that an SBI PPF account subscribers must know, is PPF premature withdrawal allowed in the SBI Public Provident Fund scheme? What will happen to the money if the SBI PPF account subscriber discontinues one's SBI PPF account?

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According to the information available on the SBI website, "SBI PPF account holder will have to at least continue his or her SBI Public Provident Scheme for six years. The SBI allows premature withdrawal of money only after the SBI PPF account holder completes six years with the account."

Some other features of the SBI PPF account are as follows:

1] The SBI allows investment limits of a minimum of Rs 500 to open the account. The maximum limit for the PPF deposit is Rs 1.5 lakh per annum;

2] The original duration of the lock-in period for a PPF account is 15 years. Thereafter, on application by the SBI Public Provident Scheme subscriber, it can be extended for 1 or more blocks of 5 years each;

3] The rate of interest is determined by the Central Government on a quarterly basis. At present, it is 7.90% per annum with effect from 01.10.2019 as per the SBI website. Visit the website for more details sbi.co.in/web/personal-banking/investments-deposits/govt-schemes/ppf;

4] Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates;

5] Income Tax benefits are available under Section 80C of the Income Tax Act 1962.

6] Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber; and

7] The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charge.