The Public Provident Fund (PPF) is a popular fixed-income savings scheme in India. This scheme is one of India’s most trusted investment options and is backed by the government. The PPF comes under the umbrella of small savings schemes, with interest rates reviewed quarterly.
Notably, the government has kept the interest rates unchanged for this quarter in 2025. Hence, the savings in Public Provident Fund (PPF) will continue to attract an interest rate of 7.1 per cent in January – March 2025. However, the rates are subject to quarterly revisions by the government. Let’s have a quick look on the unmatched features of the PPF for those seeking a reliable savings scheme.
Open your internet banking or mobile banking app and log in.
Click on the ‘Open a PPF Account’ option.
If the account is for self, click on the ‘Self Account’ option. If you are opening the account on behalf of a minor, select the ‘Minor Account’ option.
Type in how much you want to deposit each year
Submit the form and enter the OTP sent to your phone to finish the process.
You can invest as little as Rs 500 annually in your PPF account, with a maximum limit of Rs 1.5 lakh per year. The scheme features a 15-year lock-in period, and upon maturity, it can be extended indefinitely in 5-year blocks by submitting an extension form. This flexibility makes it an ideal long-term option for wealth building.
PPF investments up to Rs 1.5 lakh qualify for tax deductions under Section 80C of the Income Tax Act. Adding further, the returns are entirely tax-free, making it a highly tax-efficient investment choice.
A PPF account can be opened by any resident Indian adult. Adding further, guardians have the provision to open accounts on behalf of minors or individuals with unsound minds, ensuring accessibility for all. Furthermore, there is no age limit for opening a PPF account. You can open a PPF account at a bank, post office, or online.
You can make withdrawals from your PPF account after five years, following certain rules. When the account matures, you can withdraw the full amount, keep the balance to earn interest, or extend the account in 5-year blocks, with or without adding more money.
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