{"id":1600,"date":"2026-10-12T18:12:05","date_gmt":"2026-10-12T18:12:05","guid":{"rendered":"https:\/\/www.tiwaripedia.com\/?p=1600"},"modified":"2026-10-12T18:12:05","modified_gmt":"2026-10-12T18:12:05","slug":"ppf-account-explained","status":"publish","type":"post","link":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/12\/ppf-account-explained\/","title":{"rendered":"PPF Account Explained: Interest, Limits, Lock-in and Tax Benefits"},"content":{"rendered":"

Last updated: October 2026<\/em><\/p>\n

The Public Provident Fund (PPF)<\/strong> 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.<\/p>\n

Who can open a PPF account?<\/h2>\n
    \n
  • Any resident Indian individual.<\/li>\n
  • A parent or guardian can open one on behalf of a minor.<\/li>\n
  • Only one PPF account per person is allowed (plus accounts you hold as guardian for minors).<\/li>\n
  • NRIs cannot open a new PPF account.<\/li>\n<\/ul>\n

    Where to open<\/h2>\n

    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.<\/p>\n

    Deposit limits<\/h2>\n
      \n
    • Minimum:<\/strong> \u20b9500 per financial year.<\/li>\n
    • Maximum:<\/strong> \u20b91.5 lakh per financial year.<\/li>\n
    • You can deposit in a lump sum or in instalments during the year.<\/li>\n
    • 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.<\/li>\n<\/ul>\n

      Interest rate<\/h2>\n

      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:<\/strong> deposit before the 5th of the month (ideally before 5 April) to earn interest for that month.<\/p>\n

      Lock-in and maturity<\/h2>\n
        \n
      • The account matures after 15 full financial years<\/strong>.<\/li>\n
      • After maturity you can close it, or extend it in blocks of 5 years, with or without further deposits.<\/li>\n<\/ul>\n

        Partial withdrawal and loans<\/h2>\n
          \n
        • Loan:<\/strong> available from the 3rd to the 6th financial year.<\/li>\n
        • Partial withdrawal:<\/strong> allowed from the 7th financial year, once a year, subject to limits.<\/li>\n
        • Premature closure is allowed after 5 years only for specific reasons such as serious illness or higher education, with a small interest deduction.<\/li>\n<\/ul>\n

          Tax benefits<\/h2>\n

          PPF has EEE<\/strong> (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.<\/p>\n

          Who should invest in PPF?<\/h2>\n

          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.<\/p>\n

          \n

          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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

          Everything you need to know about the Public Provident Fund (PPF): who can open it, deposit limits, 15-year lock-in, withdrawals, loans and tax benefits.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[331],"tags":[],"_links":{"self":[{"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/posts\/1600"}],"collection":[{"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/comments?post=1600"}],"version-history":[{"count":1,"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/posts\/1600\/revisions"}],"predecessor-version":[{"id":1672,"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/posts\/1600\/revisions\/1672"}],"wp:attachment":[{"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/media?parent=1600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/categories?post=1600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tiwaripedia.com\/index.php\/wp-json\/wp\/v2\/tags?post=1600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}