public provident fund (PPF)

Every person does the savings, whether they are rich or poor. During financial crunch these savings comes in handy. We all saving some money for the better tomorrow.

Government of India has launched a number of saving schemes to enable a common man to invest his money in the right place. These small saving schemes are making every common person financially capable today.

Whether it is Kisan vikas patra or Recurring Deposit, whether it is Sukanya samriddhi scheme or National saving scheme – there are many savings schemes where you can invest your money and earn interest.




In all these saving scheme, one scheme is very popular and that is – PPF i.e. Public Provident Fund

Today we will tell you what is Public provident fund saving scheme, how it is beneficial for you and what you will get in this scheme.

What is PPF – Public Provident Fund

Public Provident Fund (PPF) – A saving scheme in which you can deposit your money for a fixed term and you get your money with interest after the maturity of the period of time.

PPF Savings Scheme is a tax saving scheme, that means no income tax is applicable.




You can open a PPF Account at any Public/private bank and Post Office. If you have a savings account in bank, you can open a PPF with your own account or you can open a PPF account even if you do not have Saving Account.

Highlights of PPF Account

Let’s know all the things related to the PPF saving scheme that are moving around in your mind at this time.

1 # What is Eligibility?

Every citizen of India can take advantage of the PPF Savings scheme. You can open your own or your child’s PPF account. For the person below 18 years of age, his father or any guardian can open ppf account.

2 # How much You can Deposit?

You can deposit Minimum Rs.500 and maximum Rs.1,50,000 every year in the Public Provident Fund Scheme. You can deposit maximum 1,50,000 per year, not more than that.

Keep in mind that at least Rs.500 you need to deposit every year to active your account and if you can not deposit 500 rupees every year, then you have Rs.50 penalty.




3 # What is the PPF Duration?

The time period of Public Provident Fund is 15 years. Yes, after 15 years, you will get your entire money with interest.

After 15 years of completion, you can extend the period of 5 years again.

You can also Withdrawal 50% of the amount every year after the 7th year.

4 # Interest rate

7.90% interest is given to you in the PPF Scheme. This interest is credited to your PPF Account every year.

5 # Where can i Open PPF Account?

You can open a PPF account at any government or private bank or post office.

In Documents, you have to give ID Proof, address proof and PAN Card along with account opening form.

6 # Does income tax apply to this?

No, PPF saving scheme is under income tax saving scheme and you do not have to pay any income tax for it. You will get your entire money with interest after 15 years.

7 # Can We Take Loan on PPF account?

Yes, you can take loan on your PPF account after the completion of the third year. Time duration may vary.

8 # PPF Account transfer

You can transfer your PPF Account from any bank to another bank or post office to post office. No charge for this service.

PPF (Public Account Opening Process)

You can also open Public Provident Fund online. To open PPF account online you must have bank account and Internet banking facility. Every bank now provide you this facility online with saving account. You can also deposit money online.

Even if you do not have a savings account, you can open a PPF account at any bank or post office.

  • Visit any bank or post office, take the address proof, ID Proof, PAN Card, Passport Photo with you.
  • Fill out PPF Account opening Form and submit with Documents
  • You can also deposit of Rs.500. You need to deposit Rs.500 in a year and maximum deposit limit is 1,50,000
  • After this process, bank will give you account kit.

So this is the Public provident fund saving scheme. If are planning to invest your small amount for longer periods to earn interest then this scheme is for you.

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