Public Provident Fund (PPF)#
What is PPF?#
A savings scheme backed by Government of India with tax benefits and guaranteed returns.
Features#
- 15-year tenure
- Partial withdrawal allowed
- Loan facility
- EEE status (Exempt-Exempt-Exempt)
Account Opening#
- Post office
- Authorized banks
- Online (some banks)
Contribution Limits#
| Type | Minimum | Maximum |
|---|---|---|
| Per year | ₹500 | ₹1.5 lakh |
| Per transaction | ₹500 | No limit |
Interest Rate#
- Current rate: ~8.2% p.a. (quarterly revised)
- Compounded annually
Tax Benefits#
- Contribution: 80C deduction
- Interest: Tax-free
- Withdrawal: Tax-free
Withdrawal Rules#
Premature Closure
- After 5 years
- For specific purposes
- Penalty on interest
Partial Withdrawal
- After 6th year
- Up to 50% of balance
- For specified purposes
Loan Against PPF#
- After 3rd year
- Up to 25% of balance
- Interest rate: PPF + 1%