The Public Provident Fund, introduced by the National Savings Institute, ensures secure savings through post offices and nationalised banks. With an interest rate of 7.10% p.a., as of FY 2024, it offers stable returns, aiding retirement planning for small investors. 


This voluntary savings scheme aims to help regular investors who can only invest small deposit amounts. By regularly depositing a fixed sum, you benefit from compounding interest, ensuring financial stability in the long term. A minimum deposit of ₹500 per financial year is required to maintain the account.

Key Features & Benefits

Before opening a public provident fund account, here are some benefits and features you should be aware of: 

  • Interest rate is fixed by the government 

  • Tax benefit of up to ₹1.50 Lakhs per financial year u/s 80C of the Income Tax Act, 1961

  • Lumpsum and systematic investments are accepted 

  • One deposit per financial year is mandatory to keep the account active 

  • Partial withdrawal permitted from seventh year

  • Option to avail of a loan against public provident fund of up to 25% of the available balance 

  • Loans can only be availed between the third and sixth year of account opening 

  • Provided by banks and post offices 

  • Lock-in period of 15 years applicable

  • Tenor can be extended in blocks of five years 

  • Joint accounts are not permitted 

  • Nominee facility is available 

  • Requires minimal documents 

  • Open account on behalf of minor in your family 

  • Only one account permitted per person; unless the second account is for a minor

Eligibility Criteria



Residential status

Applicant must be an Indian Resident


  • Applicant must be over the age of 18

  • Parent or guardian can open account on behalf of minors 

List of Documents Required



Address Proof

  • Voter’s ID

  • Aadhaar Card

  • Driver’s License


  • Driver’s License

  • Aadhar Card

  • Voter’s ID

Other documents

  • PAN Card

  • Passport size photograph

  • Form E or nomination form

  • Form A or account opening form

How to Open a PPF Account

You can open an account by visiting your nearest post office or directly investing via the bank’s official website. Here are 

Online Account Opening Process

  1. Log in to the mobile banking app or net banking portal

  2. Click the 'Open a PPF Account' tab and select the account type

  3. Fill in the application form with the required details, such as your name, address, contact number, and the deposit amount

  4. Enter the amount to be deposited per month and annually 

  5. Complete the application and click submit

Account Opening Process at a Post Office 

  1. Visit your nearest post office and request for the PPF account opening form

  2. Fill out the form with the required KYC documents

  3. Pay the initial deposit amount of ₹500 


Once your account has been created, you will receive a PPF account passbook as an account opening confirmation. 

Loan Against PPF

Subscribers have the option to utilise the loan facility against their public provident fund accounts, offering personal loans against the available balance. It's ideal for those seeking unsecured, short-term loans at competitive rates.


The loan against PPF can be accessed from the third to the sixth financial year, post opening the account. Account holders can avail up to 25% of the account balance before the third financial year. Interest rates on these loans are 1% higher than the account's interest. Failure to repay within 36 months incurs a 6% higher interest rate.


Will I earn interest on an inactive PPF account?

You must maintain an active account for 15 years to earn regular interest. For every inactive year, a ₹50 penalty will be charged. Additionally, a minimum deposit of ₹500 will have to be made for each inactive year.

What is the lock-in period for a public provident fund?

The public provident fund account has a minimum lock-in period of 15 years. However, you can partly withdraw funds after the seventh year of opening your account.

How many public provident fund accounts am I eligible to apply for?

You can apply for only one account in India, either at a bank or a post office. However, a second account can be opened by a parent or guardian for a minor.

How do I check the PPF account balance online?

You can check the public provident fund account balance online by logging into your net banking account. Here, you can check your details and balance amount.

What is the interest rate offered on PPF accounts?

As of FY 2024, the interest rate offered on public provident funds is 7.1% p.a.

Is the interest earned on a public provident fund account taxable?

No. The PPF is categorised as Exempt-Exempt-Exempt (EEE). This implies that the principal, interest, and maturity value are all tax-free.

Can I transfer my PPF account from one bank to another?

Yes. Account holders can shift their public provident fund account between different banks. They must begin the transfer process by submitting an application at their existing bank. Once completed, depending on the bank’s policies, they will be asked to furnish certain documents for the transfer to proceed.

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