Public Provident Fund (PPF) Account: Benefits, Calculator, Interest Rate, Rule, Term and Condition

All Information About PPF saving scheme stands for

PPF full form is Public provident fund is a savings-cum-tax-saving popular investment scheme introduced by the National Savings Institute of the Ministry of Finance in 1968. This scheme is best among investors to courtesy its multiple investor-friendly features and associated benefits. It is a long-term investment scheme popular among individuals who want to earn high but stable returns with the highest interest rate.


PPF Deposit Calculator

Monthly deposit in PPF
PPF Interest Rate in %
Deposit Add per
Period (months) 15 Years
Maturity Value
Total Investment
Interest earn
Extension Type
Deposit Amount
Deposit Add per
Extended Year
Maturity After Extended


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Public Provident Fund (PPF) Account: Benefits, Calculator, Interest Rate, Rule, Term and Condition


Jump To:

  • Public Provident Fund (PPF) Account Open procedure
  • Public Provident Fund (PPF) Investment
  • Public Provident Fund (PPF) Tenure
  • Public Provident Fund (PPF) Interest Rate
  • Public Provident Fund (PPF) Withdrawn
  • Public Provident Fund (PPF) Tax Exemption
  • Public Provident Fund (PPF) Nomination
  • Public Provident Fund (PPF) Calculator


  • How to Open a PPF Account offline and online

    To open a new PPF account there is two way online and offline (some bank offer the facility of opening PPF accounts online) with the following document at your nearest post office or bank.

    Following KYC documents need for open PPF account:

  • An Identity proof (Voter ID/PAN Card/ Aadhar Card)
  • Proof of residence
  • Passport size photographs
  • Pay-in-slip (available at the bank branch/post office)
  • Nomination form.

  • Note:- The initial deposit required to open a post office PPF account is Rs. 500 and the maximum amount allowed initially is Rs. 70,000.

    After open PPF account, you get passbook as like Bank passbook and Post passbook with PPF initial deposit and all details of a user.


    How much Money investment per year in a PPF account?

    A minimum of Rs. 500 and a maximum of Rs. 1.5 Lakh can be invested in a provident fund scheme annually. This investment can be undertaken on a lump sum or instalment basis. However, a subscriber is eligible for only 12 instalment payments per year into a PPF account.


    What if the subscriber discontinued monthly instalment?

    If you don’t put in a minimum Rs 500 a year, the account becomes dormant. There is a Rs 50 penalty for reactivating a dormant account.


    What if a subscriber adds 1.5 lakh+ more money to PPF account?

    If you put in more than Rs 1.5 lakh in a year, the excess amount, even if credited by mistake, will not earn any interest.


    The maximum limit of Rs 1.5 lakh per year includes the contribution in PPF accounts in the names of minor children.



    PPF Account Investment tenure

    A PPF account has a lock-in period of 15 years on investment from financial year start,
    Example:- if subscriber opens account on June 1,2019. Then the locking period starts from April 1, 2020, to April 1, 2035.

    Can an investor Extend this scheme?

    Thereafter, on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.

    Can investors Withdraw before 15 years in PPF scheme?

    Before 15 years which funds cannot be withdrawn completely.


    Interest Rate % on a PPF Account

    The interest payable on public provident fund schemes is determined by the Central Government of India. It aims to provide higher interest than regular accounts maintained by various commercial banks in the country.


    PPF interest is compounded annually but the calculation is done every month. If you invest before the 5th, the contribution will earn interest for that month so if you invest through a check then please submit your check 3-4 business days ago before 5th of the month.


    PPF can be withdrawn?

    All schemes have a premature withdrawal facility. Yes, this scheme subscriber has 2 options in PPF withdrawn.

    1. Loan
    2. Yes, PPF account has the facility to take Loan. The investor can take a loan from the third financial year till the sixth financial year because after 6 financial years.

      How much loan interest payable?
      Interest payable on the loan is PPF interest + 1% per year (Investor payable loan is 1%) and has to be repaid within three years or 36 Months.
      Example. If the PPF interest rate is 7.8% then loan interest is 8.8%.

      What done after Investor not payable?
      If an investor does not pay the loan in 36 Month then 6% more penalty charges on the investor.
      Example. Loan interest rate is 8.8% then total interest is 14.8% (8.8% + 6%).

    3. Premature Withdrawal
    4. After the completion of five years from the end of the year in which the initial investment was made, investor can withdraw up to 50% of the balance at the end of the previous year (end of forth financial year) or the immediately preceding year, whichever is lower.
      Example. If investor opens PPF account in 2010 then the investor can begin making partial withdrawals from the financial year 2015-16 (After April 2015) and Balance at the end of the preceding year (2014-2015).

    5. Premature Closure Account
    6. Before 2016 there was no rule for the closure of PPF accounts but now investors can close PPF accounts after 5 financial years with 2 conditions.
      • medical emergencies for investors or family members.
      • higher education needs for a son.


    How does the PPF account save income tax?

    Investor Contributions are eligible for tax deduction within the overall ceiling of Rs 1.5 lakh under Section 80C in the financial year.

    are PPF returns tax-free

  • PPF interest earned is not taxable, but has to be reported in the tax return filed by an individual.
  • Withdrawals are tax-free and do not affect the tax liability of the individual.
  • Corpus withdrawn on maturity is also tax-free.


  • Can investors earn additional tax benefits of PPF?

    Yes, Open a PPF account in the name of your spouse or child to gain additional tax benefits. As per tax laws, if money gifted to a spouse is invested, income from the investment is clubbed with that of the giver. Means investor gift money to their wife and this money is invest in PPF a account then maturity income is tax-free and counts in wife income.
    Since PPF income is tax-free, it does not push up the tax liability of the giver. So one can invest up to Rs 1.5 lakh a year in this tax-free haven.

    Can PPF accounts be transferred?

    Yes, The account can be transferred to other branches/ other banks or Post Offices and vice versa upon request by the subscriber. The service is free of charge.


    PPF nomination facility

    You can nominate more than one person. If you choose to nominate more than one person, you will need to mention the percentage of the share; the shares of all nominees should add up to 100 per cent. Also, if the account has been opened on behalf of a minor, a nomination facility is not provided.

    What done after investor PPF account without nomination

    If there is no nomination in force, the claim can be made by the legal heirs (Wife, Son, Daughter, Parents, sister) of the subscriber. In addition to the death certificate, the legal heirs also have to submit a succession certificate or letters of administration along with an attested copy of probate of will issued by a competent court.

    Read More:


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