Understanding Public Provident Fund (PPF)

What is PPF? A government-backed, long-term savings scheme offering secure returns and tax benefits. Investment & Lock-in Period Minimum: ₹500 per year Maximum: ₹1.5 lakh per year Lock-in period: 15 years

Interest Rate & Tax Benefits Current interest rate: 7.1% per annum Tax benefits: Deposits, interest, and withdrawals are tax-free. Account Operation Can be opened by adults for themselves or minors. Minimum deposit required yearly to keep the account active.

Withdrawals & Loans Partial withdrawals allowed from the 7th year. Loans available from the 3rd to 6th year. Extension & Closure Extendable in 5-year blocks after 15 years. Premature closure allowed for medical treatment, higher education, or NRI status.

How to Open PPF Account Through post offices or banks like SBI, ICICI, HDFC. Online application requires Aadhaar linked to a savings account. Closure Rules Premature closure after 5 years for specific reasons. Account closure upon the account holder’s death by the nominee.