SBI PPF Withdrawal Rules – PPF is the safest option of saving for common people with little investment. It is like a boon to people with normal salaries. SBI PPF withdrawal rules are different from other investment schemes. PPF account Lock-in period is 15 years.
You can withdraw the PPF amount with interest, only after the completion of the scheme. There are certain SBI PPF withdrawal rules to follow in case of partial withdrawal. In this article, we will discuss SBI bank PPF withdrawal rules.
How to withdraw SBI PPF partial amount?
A partial withdrawal from your SBI PPF account is allowed subject to certain conditions such as:
- You will get a partial withdrawal after 5 financial years of PPF account opening.
- According to PPF withdrawal SBI rules, only 1 partial withdrawal in one year is allowed.
- You can withdraw 50% of the PPF amount.
- You have to submit an application form with a passbook to withdraw the amount from the PPF account.
- There is no tax on the amount that you withdraw from the SBI PPF account.
- Before completing SBI PPF withdrawal, the bank of PPF account will verify every detail of your application form.
What is the process of partial SBI PPF Account withdrawal?
You have to follow a simple process for partial withdrawal from your PPF account.
- The first step is to download ‘Form C’ from the official site of the bank. There are various sections in which you have to write PPF account name, amount of money to withdraw, current balance, and other details for withdrawing amount.
- Then, you have to provide a copy of the passbook.
- Finally, you have to submit this form to the bank branch.
- After processing an application, you will receive the amount in your savings account. You must follow these PPF account withdrawal rules in SBI for partial withdrawals.
How Withdraw SBI PPF Complete Amount?
As per SBI bank PPF withdrawal rules, withdrawal is allowed after a time of 15 years only. The Lock-in period of every PPF account is 15 years after which you are eligible to withdraw the full amount with interest as well.
SBI PPF Withdrawal Rules with Account Extension
You can extend your PPF account by one or more blocks after 15 years. Every block has 5 years. If you do not withdraw the amount from your PPF account, it will extend automatically. You will get interest on the saved PPF account investment amount.
Extension without contribution
You can keep your PPF account active without making deposits under this option. If your PPF account is extended without contribution, then you can withdraw the amount only after extended maturity.
Extension with contribution
Under this option, you need to make deposits every year to keep your PPF account active. If your PPF account is extended with contribution, you can withdraw only 60% of the total amount available at the time of the PPF account extension. Under this option, you can withdraw money once every year.
What are SBI PPF premature closure Rules?
After 5 years of PPF account opening, It is possible to close PPF account prematurely under certain circumstances such as:
- When the account holder, his/her partner, or children suffer from severe diseases.
- When account holders or children want money for higher studies.
- When the account holder changes his resident status from one country to another.
Account-holders will have to bear the penalty of 1% on the interest for the investment period of the PPF account held by them.
Tax benefits on SBI PPF withdrawal Rules
You will receive PPF tax benefits on SBI PPF Account withdrawals according to section 80C of the Income Tax Act.
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