How to Reactivate a Closed PPF Account? Know Here Simple Steps

New Delhi: If you are associated with the Public Provident Fund, i.e., the PPF scheme, you must take care of some essential things. It is considered a preferred option where investment is secure. Investing in the PPF scheme can raise a considerable amount of funds. You can easily invest in this scheme for up to 15 years.

You can invest at least Rs 500 and a maximum of Rs 1.5 lakh annually in this account. Customers can easily earn interest up to 7.1 per cent by investing in the PPF scheme, which is essential in tax benefits. If your PPF has become inactive for any reason, will it have to be done to activate it? How much penalty will have to be paid? Know all this below.

What do you do to activate a PPF account?

If you want to activate the accouchement, account, you must first have some essential things. To re-activate the account, the customers must first apply for the form. The arrears of the year when money was not deposited in the PPF account will have to be paid. Along with this, a penalty of Rs 50 will have to be paid annually.

For example, if your account is closed for four years, a penalty of Rs 200 will be charged at Rs 50. If the arrears amount to Rs 500 per year, Rs 2000 must be deposited in four years. The penalty is deposited under the default scheme. If you make the same mistake, the account will be closed. Be careful that the loan withdrawal facility is unavailable on a closed account.

 which situations close the account before 15 years

If you want to close the PPF account midway, it must be at least 5 years old. It is clear from this that the benefit of this facility can be availed only after 5 years. If you withdraw money from the PPF account, the interest will be returned after deducting 1%. There must be some circumstances for this.

It can be a medical emergency, or you may need money to treat your wife or child. In. Additionally, the account holder can close the account for his own higher education or the education of dependent children.