Last updated: October 2026
The Public Provident Fund (PPF) is one of India’s most popular long-term savings schemes. It is backed by the Government of India, gives a fixed interest rate, and the interest and maturity amount are tax-free. Here is a simple guide.
Who can open a PPF account?
- Any resident Indian individual.
- A parent or guardian can open one on behalf of a minor.
- Only one PPF account per person is allowed (plus accounts you hold as guardian for minors).
- NRIs cannot open a new PPF account.
Where to open
At any post office or at authorised banks such as SBI, Bank of Baroda, ICICI Bank, HDFC Bank and others. Many banks let you open it online through net banking.
Deposit limits
- Minimum: ₹500 per financial year.
- Maximum: ₹1.5 lakh per financial year.
- You can deposit in a lump sum or in instalments during the year.
- If you miss the minimum deposit in a year, the account becomes inactive; you can revive it by paying the missed minimum plus a small penalty.
Interest rate
The government announces the PPF interest rate every quarter. Interest is calculated monthly on the lowest balance between the 5th and the last day of the month, and credited once a year. Tip: deposit before the 5th of the month (ideally before 5 April) to earn interest for that month.
Lock-in and maturity
- The account matures after 15 full financial years.
- After maturity you can close it, or extend it in blocks of 5 years, with or without further deposits.
Partial withdrawal and loans
- Loan: available from the 3rd to the 6th financial year.
- Partial withdrawal: allowed from the 7th financial year, once a year, subject to limits.
- Premature closure is allowed after 5 years only for specific reasons such as serious illness or higher education, with a small interest deduction.
Tax benefits
PPF has EEE (Exempt-Exempt-Exempt) status: deposits qualify for deduction under Section 80C (old tax regime), and both the interest and the maturity amount are tax-free.
Who should invest in PPF?
PPF suits people who want safe, guaranteed, tax-free growth for long-term goals such as retirement or a child’s education, and who do not need the money for 15 years.
Disclaimer: This article is for general information only and is not financial or tax advice. Interest rates and rules change; please confirm current details on the official website before acting.
