What is Public Provident Fund (PPF), the savings tool that has empowered millions in India

Mar 06, 2018, 02:05 PM IST

Public Provident Fund (PPF) was launched to encourage the thrifty Indian public to create a retirement corpus. Notably, PPF deposits are liable for tax deductions and interest earned is not taxable.


A PPF account can be opened at any nationalised, authorised, private bank and authorised branches/post offices


Deposits must be made every year for a period of 15 years


One can open a PPF account with just Rs 100, and can make annual deposits between Rs 500 and Rs 1.5 lakh per year


A PPF investor can make partial premature withdrawals every year from year 7


Complete withdrawal of funds can be made only at maturity



.Interest rates on PPF is 7.6%


Unlike bank FDs, PPF rates are not fixed for the entire tenure of the holding