Here is the whole scheme in one place: what you get, who qualifies, how to apply, and what to check.
| Scheme | Public Provident Fund (PPF) |
|---|---|
| Ministry | Ministry of Finance, Govt of India |
| Benefit | Government-set interest, tax-free, with tax deduction under Section 80C |
| Who can apply | Resident Indians, including minors through a guardian |
| How it is paid | Interest is credited each year, and the full amount is paid at maturity |
| Apply at | Any India Post office or a bank offering PPF accounts |
| Cost to apply | Minimum yearly deposit of Rs 500 to keep the account active |
Key points
- Minimum deposit is Rs 500 a year, and maximum is Rs 1.5 lakh a year.
- The account runs for 15 years and can be extended in 5-year blocks.
- Interest rates are set by the government every quarter, so check the latest rate.
- NRIs cannot open new PPF accounts.
So what do you actually get from a PPF account?
Your money earns interest set by the Government of India. The rate is announced every quarter, and it has been around 7 to 8 percent in recent years.
The interest is compounded every year and credited in March. It is calculated on the lowest balance between the 5th and the last day of each month, so deposit before the 5th to earn on the full amount.
The interest and the maturity amount are tax-free. Your deposits also get a tax deduction under Section 80C, up to Rs 1.5 lakh a year.
Graphic: News Anek, from the facts in this report
Amounts can change, so confirm the current rate on the official India Post website.
Who can open a PPF account, and who cannot?
Any individual who is a resident of India can open a PPF account. Parents or guardians can open one for a minor child.
Non-resident Indians cannot open a new PPF account. Those who already have one can continue it until it matures.
Only one deposit cap applies per person, including accounts where you are the guardian. Extra deposits above Rs 1.5 lakh in a year earn no interest.
What is the background of this scheme?
PPF was introduced in 1968 to mobilise small savings and give people social security during uncertain times.
It is run by the Ministry of Finance and offered through post offices and authorised banks.
The rules were revised by the Public Provident Fund Scheme, 2019, which came into effect on 12 December 2019. The loan interest spread was reduced to 1 percent.
What documents should you keep ready?
Keep your Aadhaar card, PAN card if you have one, and a passport size photograph.
You will also need your address proof and a nominee's details.
For a minor's account, keep the child's birth certificate and the guardian's ID proof.
How do you open a PPF account step by step?
Visit your nearest India Post office or a bank that offers PPF accounts.
Ask for the PPF account opening form and fill in your personal details and nominee details.
Submit the form with your documents and your first deposit of at least Rs 500.
You will get a passbook. Keep it safe, and keep making yearly deposits to keep the account active.
Can you take a loan or withdraw money before maturity?
A loan is allowed from the third to the fifth financial year. You can borrow up to 25 percent of the balance at the end of the second preceding year.
Use Form D to apply. The loan must be repaid within 36 months, and the interest is 1 percent above the PPF rate.
Partial withdrawals are allowed from the seventh financial year, subject to the rules. Confirm the details at your post office or bank.
What happens when the 15 years are over?
You can withdraw the full amount and close the account.
You can extend the account for 5-year blocks, with or without new deposits.
If you do not act within one year of maturity, the account is extended automatically without new deposits.
Where can you get help, and how do you avoid fraud?
For India Post services, call the helpline 1800 266 6868, open 8 AM to 8 PM. The IVRS line works all day, every day.
Be careful of fake links and callers. India Post has warned about fraudulent sites impersonating it.
Never share your OTP, bank details or UPI PIN with anyone. Use only the official India Post website.
Frequently asked questions
Can both husband and wife open PPF accounts?
Yes. Each person can open their own account, and each has a separate deposit limit of Rs 1.5 lakh a year.
What is the maximum deposit in a year?
The maximum is Rs 1.5 lakh a year. Any amount above that will not earn interest.
Is there a last date to apply?
There is no last date. You can open a PPF account any time, as long as you are a resident of India.
Is PPF interest taxable?
No. The interest and the maturity amount are tax-free under current rules.
What if I miss a yearly deposit?
The account becomes inactive, but you can revive it by paying the missed amount with a penalty. Check with your bank or post office.
Official links
This guide is based on official scheme rules. Rules and amounts can change, so always confirm on the official website before you apply. News Anek is not a government website.
