<P> The public provident fund is established by the central government . One can voluntarily open an account with any nationalized bank, selected authorized private bank or post office . The account can be opened in the name of individuals including minor . </P> <P> The minimum amount is Rs. 500 which can be deposited . The rate of interest at present is 7.6% per annum, which is also tax - free . The entire balance can be withdrawn on maturity . Interest received is tax free . The maximum amount which can be deposited every year is Rs. 1, 50,000 in an account at present . The interest earned on the PPF subscription is compounded annually . All the balance that accumulates over time is exempted from wealth tax . Moreover, it has low risk--risk attached is Government risk . PPF is available at post offices and banks . </P> <P> There is a lock - in period of 15 years and the money can be withdrawn in full after its maturity period . However, pre-mature withdrawals can be made from the start of the seventh financial year . The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower . </P> <P> After 15 years of maturity, full PPF amount can be withdrawn and all is tax free, including the interest amount as well . </P>

When can you withdraw money from ppf account