Alternatives to Consider
- Loan against PPF: You can avail a loan against your PPF account after 3 years, without affecting your account maturity or tax benefits.
- Emergency Fund: Maintain a separate emergency fund to avoid tapping into your PPF for unforeseen expenses.
Can I Withdraw From PPF Without Penalty?
The Public Provident Fund (PPF) is a popular long-term investment scheme in India, offering attractive interest rates and tax benefits. However, many wonder if they can withdraw funds from their PPF account without penalties. Here’s a breakdown of the rules,
- There is no penalty for complete withdrawal at maturity (15 years).
- Partial withdrawals are allowed after 5 years but with limitations and loss of interest.
- Special cases allow higher withdrawals under specific circumstances.
- Withdrawals are tax-free in all cases.
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