Public Provident Fund (Central)

Public Provident Fund (PPF) is a government-backed savings scheme allowing citizens to save regularly and create a corpus for the future. Tenure is 15 years (extendable in 5-year blocks).

• 1. Interest rate: 7.1% per annum
• 2. Flexible annual contribution: between ₹500 and ₹1.5 lakh per year
• 3. Tax benefits: full tax exemption on investments, interest, and maturity proceeds under Section 80C
• 4. Full withdrawal permitted after 15 years; partial withdrawals after 5 years; loans (up to 25% of balance) from the 3rd to 6th year
• A minor can have a PPF account, opened by either parent; a couple with two children can open a maximum of 4 accounts (two for themselves and two for their children).
• Nomination facility is available at the time of opening and after opening the account; the account can be transferred from one post office to another.
• If the minimum deposit of Rs.500/- is not made in any financial year, the PPF account becomes discontinued.

Individuals who are residents of India can open an account under the scheme.

• 1. Pan card
• 2. Aadhar card