BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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3 years
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5 years
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9 years
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15 years
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Detailed explanation-1: -To get a clear idea of this formula, let’s look at an example. Assuming you deposit an annual amount of Rs. 1 lakh in your PPF account for a period of 15 years at an interest rate of 7%, then the maturity amount on completion of PPF tenure will be equal to Rs. 28.82 lakh.
Detailed explanation-2: -As a rule, one can fully withdraw the PPF account balance only upon maturity, i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.
Detailed explanation-3: -Maturity: A PPF account matures in 15 years, and you can extend it in blocks of 5 years each. You must extend the tenure within one year of maturity.