Guides / PPF Guide: Interest, Limits, Lock-in and Maturity

PPF Guide: Interest, Limits, Lock-in and Maturity

The Public Provident Fund (PPF) is a government-backed savings scheme. It suits people who want safe, tax-friendly, long-term savings.

Key features

• Lock-in: 15 years. You can extend in blocks of 5 years.
• Yearly limit: ₹500 minimum, ₹1.5 lakh maximum per financial year.
• Interest: set by the government every quarter. It was 7.1% in recent quarters, so check the current rate.
• Safety: backed by the Government of India.
• Tax: deposits can qualify for a deduction under the old regime, and interest and maturity are tax-free under current rules.

What it can grow to

At 7.1% with ₹1.5 lakh deposited every year:

Test your own plan in the PPF Calculator.

Access to your money

Loans are allowed in the early years and partial withdrawals after the 6th year, within limits. Check the current rules before you plan on it.

Tips

1. Deposit before the 5th of each month to earn interest for that month.
2. Deposit early in the financial year if you can.
3. Treat PPF as the safe part of your portfolio, not your only investment.