What happens to the money after PPF account holder's death? Here's the detail

New Delhi: People have to devise an efficient plan to save and invest money during working time. Peoples invest their hard-earned money in different investment schemes to sustain their retired life. But unfortunately, if account holders die what happens to their hard-earned money? Wondering to know the answer to the legitimate questions? Here are all the details of one of the significant saving instruments where people prefer to invest more i.e Public Provident Fund (PPF). 

The maturity period of any scheme of PPF is 15 years. But yes, the PPF account can be closed even before maturity time. (Also Read: Festive bonanza! HDFC cuts home loan interest rate, launches special Diwali offer; details here)

When one can withdraw money from the PPF account before the maturity period?

PPF account holders can withdraw money before maturity in case of health and education emergencies. If the account holder is an NRI, the PPF account can be closed after completion of at least 5 years from the opening date. However, 1 per cent interest will be deducted. (Also Read: Invest in THIS post office scheme to get Rs 16 lakh in 10 years; check details here)

What happens when the account holder dies?

If the account holder dies before maturity, his nominee can withdraw the money. There is no any time bar in such a situation. His/Her PPF account will be closed after the death. The amount will be given to the nominee or to the legal heir. The same account cannot be carried forward.

Compound Interest

The interest rate on PPF is decided by the government. The interest is changed on a quarterly basis. At present, 7.1 per cent interest is being offered.