Lock-in Period:

The lock-in period of a PPF account is 15 years. This means you cannot withdraw the entire amount before 15 years from the end of the financial year in which the account was opened. However, partial withdrawals are permitted from the 7th year onwards, subject to certain conditions.

How does the lock-in period in PPF work?

The maximum amount you can withdraw is lower of:

1. 50% of the balance at the end of the 4th year immediately preceding the year of withdrawal or

2. 50% of the balance at the end of the immediate preceding year.

Also, from the 3rd financial year onwards, you can avail loans against your PPF account until the end of the 6th financial year. The loan amount will be up to a maximum of 25% of the balance in your account at the end of the 2nd year immediately preceding the year in which the loan is applied for. After the lock-in period ends, you have the option to extend the account for another block of 5 years.

Remember, the main aim of the lock-in period in PPF is to encourage long-term savings and offer substantial returns over a prolonged period