The Public Provident Fund is seen as a good investment. It is a product suitable for all investors, and certainly for those who do not have access to the EPF (employees’ provident fund) via their employers.
Public provident funds are seen as low-risk investments. As you already know, PPF has a tenure of 15 years. Investors can withdraw money from their PPF account before the need arises. Loan facility is also available on PPF account. At present, the current PPF account interest rate is 7.10 per cent.
Regarding withdrawal of money from PPF account before completion of 15 years, Jitendra Solanki says, "Withdrawals from PPF account can be made from the sixth year. People whose PPF account is 5 years old and who need money can easily withdraw money from there account, "Live Mint reported.
On how much PPF withdrawal is allowed before the maturity of 15 years Solanki said that PPF withdrawal limit can be either first four years PPF balance or last four financial year's PPF contribution, whichever is less.
On PPF withdrawal within 5 years, Manikaran Singhal, Founder, goodmoneying.com said, "PPF withdrawal before 5 years is not allowed but the account holder is allowed to take loan against PPF account if the PPF account is more than 3 years old. The loan against PPF is given at the interest rate of 1 per cent."