Public Provident Fund (PPF)

Secure your future with India's most trusted long-term savings scheme. Enjoy tax benefits and guaranteed returns.

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What is PPF?

Public Provident Fund (PPF) is a government-backed long-term savings scheme that offers attractive interest rates, tax benefits, and guaranteed returns. It's one of the most popular investment options for risk-averse investors.

Government Backed
7.1% Interest
Tax Benefits
15 Year Lock-in

PPF Calculator

₹5,000
15 Years Total ₹9,00,000
Interest Earned ₹4,50,000
Maturity Amount ₹13,50,000

Benefits of PPF

Government Guarantee

100% government-backed scheme with guaranteed returns and no risk of capital loss.

Attractive Returns

Currently offers 7.1% interest rate, compounded annually for maximum growth.

Tax Benefits

Eligible for deduction under Section 80C up to ₹1.5 lakhs annually.

Long-term Savings

15-year lock-in period encourages disciplined long-term savings habits.

Easy Access

Available at all major banks and post offices across India.

Compound Interest

Interest is compounded annually, leading to significant wealth accumulation.

How to Open PPF Account

1

Choose Bank/Post Office

Select a bank or post office where you want to open your PPF account.

Major Banks Post Offices
2

Submit Application

Fill the PPF account opening form and submit required documents.

Form A Documents
3

Initial Deposit

Make your first deposit (minimum ₹500) to activate the account.

₹500 Min ₹1.5L Max
4

Account Activation

Your PPF account will be activated and you can start investing.

Account Number Passbook

PPF Investment Rules

Investment Period

15 years from the end of the financial year in which the account was opened.

  • Minimum: 15 years
  • Can extend in blocks of 5 years
  • No maximum limit

Investment Limits

Flexible investment options with annual limits for maximum benefits.

  • Minimum: ₹500 per year
  • Maximum: ₹1.5 lakhs per year
  • Can invest in 12 installments

Interest Rate

Government announces interest rates quarterly based on market conditions.

  • Current rate: 7.1% p.a.
  • Compounded annually
  • Credited on 31st March

PPF Withdrawal Rules

Partial Withdrawal

Available after 6 years from the end of the financial year of account opening.

After 6 Years 50% of Balance Once per Year

Maturity Withdrawal

Full withdrawal available after 15 years or extend the account for 5 more years.

After 15 Years Full Amount Tax Free

Premature Closure

Available only in specific circumstances with certain conditions.

Medical Emergency Higher Education 1% Penalty

Tax Benefits of PPF

Investment Deduction

Deduction under Section 80C up to ₹1.5 lakhs from your total income.

Example: If you invest ₹1.5L in PPF, you can claim full deduction

Interest Tax-Free

Interest earned on PPF is completely tax-free under Section 10(11).

Example: ₹4.5L interest earned is tax-free

Maturity Tax-Free

Maturity amount including principal and interest is completely tax-free.

Example: ₹13.5L maturity amount is tax-free

Frequently Asked Questions

Can I open multiple PPF accounts?

No, only one PPF account can be opened in your name. Multiple accounts are not allowed.

What happens if I don't invest for a year?

Your account remains active, but you won't earn interest for that year. You can resume investments later.

Can I transfer my PPF account?

Yes, you can transfer your PPF account from one bank/post office to another.

Is PPF better than FD?

PPF offers tax benefits and government guarantee, while FDs offer higher liquidity. Choose based on your goals.