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After the 15-year lock-in period ends, you can withdraw the entire amount or extend the account. PPF is safe, offers tax benefits, and offers a 7.1% interest rate. Partial withdrawals are allowed after 6 years.
For many Indians, the Public Provident Fund (PPF) is considered the most reliable way to save for the long term. It’s not only safe, but also offers tax benefits and a fixed interest rate of 7.1% from October to December 2025.
Since this is a 15-year plan, people often ask if the funds can be withdrawn before the 15-year term is over. The answer is yes, but only under certain conditions.
Lock-in Period
The lock-in period for a PPF account is 15 years. This means you cannot close the account and withdraw all the funds before this period is over. However, the rules are not so strict, as partial withdrawals are allowed after the completion of six years. From the seventh financial year onwards, you can withdraw a portion of your account if needed.
Partial Withdrawal Rules
The government has established these rules to ensure your money continues to grow and your entire deposit is not depleted all at once. The maximum amount you can withdraw is the lesser of two amounts: either half the balance at the end of the fourth year of the account, or half the balance at the end of the year immediately preceding the withdrawal. This way, you can withdraw some money in case of an emergency, while your remaining savings remain safe.
Premature Account Closure
Since 2016, the government has introduced the option to completely close your PPF account after five years under certain circumstances. This option is only available for treatment of a serious illness or for higher education expenses for yourself or your children.
If you do this, you face a 1 percent reduction in interest as a penalty, meaning you’ll earn 1 percent less than the stated PPF interest rate.
Loan against PPF
If you need money but don’t want to withdraw your savings, you can also take a loan against your PPF balance. You can take a loan up to 25% of your balance between the third and sixth financial years of your account. This loan must be repaid within 36 months. The advantage is that your account remains active and your savings remain safe.
After 15 years
When your 15-year lock-in period ends, you can withdraw all your funds if you wish. If you prefer, you can extend the account in 5-year blocks, with or without making new deposits. Many people choose this option because it keeps the money safe, earns tax-free interest, and is easily accessible when needed.
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