Public Provident Fund (PPF)
Public Provident Fund (PPF) was introduced in 1968 to encourage long-term savings
with guaranteed returns and tax benefits. It is backed by the Government of India
and offers a risk-free investment avenue.
Current PPF interest rate: 7.10% per annum (compounded annually)
Essential Features of PPF
- Minimum tenure of 15 years, extendable in blocks of 5 years
- Minimum investment: ₹500 per year
- Maximum investment: ₹1.5 lakh per financial year
- EEE status – investment, interest and maturity are tax-free
- Deposits can be made once or multiple times in a year
- Only one PPF account per individual
PPF Deposit Limits
A PPF account requires a minimum deposit of ₹500 every financial year to remain active.
The maximum allowed deposit is ₹1.5 lakh per year (April–March). Deposits can be made
any number of times, but the total must not exceed the yearly limit.
Withdrawal Rules
- Loans allowed between the 3rd and 6th year
- Partial withdrawals allowed from the 7th year onwards
- Maximum withdrawal: 50% of balance at the end of the 4th year
- Only one withdrawal per financial year
Loan Against PPF
- Loan up to 25% of balance in the 2nd preceding year
- Interest rate is 2% higher than PPF interest
- Loan tenure: 36 months
Eligibility
- Only Indian residents can open a PPF account
- NRIs cannot open new PPF accounts
- Existing PPF accounts of NRIs cannot be extended after maturity
👉 Want to calculate returns?
Use PPF Calculator