The government said subscribers of the Public Provident Fund (PPF) can prematurely close the deposit scheme after completing five years for meeting expenses towards medical treatment or higher education, while it kept interest rates unchanged for various small savings schemes for the July-October quarter of 2016-17 fiscal.
The finance ministry in a statement said that interest rate on one-year deposits for July-October quarter of this fiscal has been kept unchanged at 7.1 per cent. Interest rate on two-year time deposit, three-year time deposit and five-year time deposit were kept at 7.2 per cent, 7.4 per cent and 7.9 per cent, respectively.
Likewise, interest rate on PPF scheme, Kisan Vikas Patra scheme and Sukanya Samriddhi Account Scheme were kept at 8.1 per cent, 7.8 per cent and 8.6 per cent respectively. In February this year, the Ministry had announced that small savings rate will be set quarterly to align them with market rate of government securities.
On premature closure of the PPF accounts, the ministry said: “A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority.”