PPF Account | In case of death of the concerned account holder, the entire amount along with interest goes to his heirs. There is no lock-in period for that. In order to get this money, the heir of the deceased has to submit the form.
New Delhi: A long-term investment in a Public Provident Fund can pay off. In particular, in case of death of the PF account holder, his successor can continue his account. In case of death of the concerned account holder, the entire amount along with interest goes to his heirs. There is no lock-in period for that. In order to get this money, the heir of the deceased has to submit the form. (Can a nominee continue ppf account after death of account holder)
The Public Provident Fund is a tax saving investment with the highest lock-in period. The lock-in period of this scheme is 5 years. Withdrawals from this account are allowed from the sixth year. The scheme was completed over a period of 15 years.
There are certain rules for closing a PPF account within five years. If the concerned account holder, his / her spouse has any serious illness, this account can be closed within five years. This account can also be closed if the child wants money for higher education. The account can be closed even if the concerned account holder becomes an NRI. However, an interest rate of one per cent is deducted for this.
The PPF account currently earns 7.1 per cent interest. From the third year you can take out a loan on a PPF account. If the loan is repaid in three years, only one per cent interest will be charged. If it lasts for more than three years, the interest rate will be 6 per cent.
