An investor has the following options:                                                                                    1. Close the account and withdraw the entire amount; or                                                        2. Extend the account without fresh deposits; or                                                                    3. Extend the account with fresh eposits.

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A Non Resident Indian (NRI), Hindu Undivided Family (HUF) and corporates cannot open an account.

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The new deposits will not earn any interest and the benefits of Sec. 80C of the Income Tax Act will not be available.

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Yes. A PPF account can be opened either by the mother or father on behalf of their minor son or daughter. Only one PPF account can be opened in the name of minor. It means, mother and father both cannot open PPF accounts on behalf of the same minor.

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Grand-parents cannot open a PPF account on behalf of minor grand-child. However, in case of death of both the father and mother, grand-parents can open a PPF account as guardians of the grand-child.

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Yes. In the event of her marriage, a female subscriber may request for change in surname by submitting documentary evidence of the same.

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If a resident Indian becomes an NRI, he can continue to invest in PPF till maturity. He will continue to earn same interest rate as given to resident Indians. However, an NRI cannot extend his account beyond maturity.

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Interest for a particular month is calculated on the lowest balance between the close of the 5th day and the end of the month.

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Yes. The scheme comes with a lock-in period of 15 years. The period of 15 years is calculated from the end of the financial year in which the account was opened.

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Yes. You can extend the tenure of PPF account for a block period of 5 years beyond the maturity period within one year from the date of maturity. It can be done as many times as one wish.

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Yes. The scheme provides for liquidity in the form of loans and withdrawls during the lock-in period.

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The loan facility can be availed from the 3rd financial year till the end of the 6th financial year. The amount of loan can't exceed 25% of the balance at the end of the 2nd immediately preceeding year. Suppose you have a balance of Rs.1.63 Lacs, Rs.3.40 Lacs and Rs.5.30 Lacs at the end of FY 2014-15, 2015-16 and 2016-17 respectively. So the eligible loan amount in FY2017-18 will be Rs.0.85 Lacs, i.e., 25% of Rs.3.40 Lacs.

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Interest rate charged on the loan taken is 2% higher than the prevailing interest rate on PPF set by the Government.

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No. Once the interest rate is set for the loan, then the same rate will be applicable until the repayment period.

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The loan taken from PPF has to be returned within 36 months. The tenure of 36 months is calculated from the 1st day of the following month in which the loan is taken.

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No. You will not be eligible for a new loan until the old loan has been paid off along with interest.

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In case the loan is not repaid within 36 months, then the applicable interest rate would be 6% instead of 2% above interest rate on PPF, from the date the loan was taken till the loan has been repaid.

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Partial withdrawls can be made from PPF starting from the 7th financial year,e.g., if an account was opened in FY2014-15, partial withdrawls can be made after 1st April' 2020.

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Yes. A person can withdraw lower of the following: 

a) 50% of the balance available at the end of 4th year immediately preceeding the year of withdrawl; or

b) 50% of the balance stood at the end of the preceeding year.

However, any loan will be deducted from the eligible amount for withdrawl.

Suppose you have a balance of Rs.1.09 Lacs, Rs.2.27 Lacs, Rs.3.55 Lacs, Rs.5.49 Lacs, Rs.7.60 Lacs and Rs.9.84 Lacs at the end of FY 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 respectively. So the eligible withdrawl amount in FY2017-18 will be lower of 50% of:

a) 50% of the balance at the end of FY2016-17,i.e., 50% of Rs.9.84 Lacs = Rs.4.92 Lacs; or

b) 50% of the balance at the end of FY2013-14,i.e., 50% of Rs.3.55 Lacs = Rs.1.78 Lacs.

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No. Only one withdrawl is allowed per financial year.

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