Anamika Verma
Anamika Verma
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PPF Simplified: Key Features and Benefits of the Public Provident Fund

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The Public Provident Fund (PPF) is a popular long-term savings scheme in India, designed to provide financial security and income stability post-retirement. Managed by the government, it offers a combination of safety, attractive interest rates, and tax benefits, making it an appealing option for investors.

Key Features of Public Provident Fund (PPF):

  1. Eligibility: Any Indian citizen, including minors, can open a PPF account. Non-resident Indians (NRIs) are not eligible.
  2. Investment Duration: The PPF has a 15-year maturity period, with options for extensions in blocks of 5 years.
  3. Deposit Limits: Minimum annual deposit is INR 500, while the maximum is INR 1.5 lakhs. Deposits can be made in lump sums or installments.
  4. Interest Rates: The interest rate is determined by the government and is revised quarterly. The current rate offers a competitive return compared to other fixed-income instruments.
  5. Tax Benefits: Contributions to PPF qualify for tax deductions under Section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount are tax-free.
  6. Loan and Withdrawal Facilities: Loans can be availed against the balance from the third financial year, and partial withdrawals are permitted from the seventh year onwards.
  7. Risk-Free Investment: As a government-backed scheme, the PPF is considered one of the safest investment options with guaranteed returns.

Read Complete:- PPF vs. FD: Finding the Perfect Balance for Your Financial Goals Using Calculators