💰 Savings 8 min read·Updated 1 July 2026
PPF: The Complete Public Provident Fund Guide
The Public Provident Fund is one of the few Indian instruments that is triple-tax-exempt (EEE) — contribution, interest, and maturity are all tax-free.
The basics
- Tenure: 15 years, extendable in 5-year blocks.
- Deposit: ₹500 to ₹1.5 lakh per financial year.
- Rate: reset quarterly by the government (7.1% p.a. currently).
- Compounding: annual.
- Tax: EEE — investment (80C), interest, and maturity are tax-free.
Partial withdrawal and loan rules
Loan against PPF is available between the 3rd and 6th financial year.
Partial withdrawal is allowed after 7 completed years.
Full closure before 15 years is allowed only in specific situations — medical emergency of self/family or higher education.
Pro tips
- Deposit before the 5th of every month — interest is calculated on the minimum balance between the 5th and end of month.
- One lumpsum on April 5th of every year maximises interest over the year.
Frequently asked questions
Can I open more than one PPF account?+
No. One person can hold only one PPF account (plus one on behalf of a minor).
What if I miss a year?+
The account becomes inactive. Revive by paying a ₹50 penalty plus a ₹500 deposit per year missed.
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