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Savings Scheme

Public Provident Fund (PPF)

Saptarshi Ghosh Posted on Nov 03, 2026

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

Eligibility	Criteria
Residential status	Applicant must be an Indian Resident
Age	Applicant must be over the age of 18 Parent or guardian can open account on behalf of minors

List of Documents Required

Type	Documents
Address Proof	Voter’s ID Aadhaar Card Driver’s License
KYC	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

Log in to the mobile banking app or net banking portal
Click the 'Open a PPF Account' tab and select the account type
Fill in the application form with the required details, such as your name, address, contact number, and the deposit amount
Enter the amount to be deposited per month and annually
Complete the application and click submit

Account Opening Process at a Post Office

Visit your nearest post office and request for the PPF account opening form
Fill out the form with the required KYC documents
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.

Frequently Asked Questions

Can I open more than one PPF account?

No, one person can hold only one account under their name.

How do I convert a minor’s PPF account once they turn 18?

To convert a minor’s PPF account upon reaching 18 years of age, visit the bank or post office branch where the account was opened and complete the necessary formalities.

What’s the minimum lock-in period for a PPF investment?

The minimum lock-in period for a PPF investment is 15 years. After maturity, you have the option to extend the account in 5-year blocks to keep it active. Partial withdrawals are allowed from the 7th year onwards, subject to specific rules.

Hi! I’m Saptarshi Ghosh

Financial Content Specialist

Saptarshi, a.k.a. Shoppy, is a marketing maven with over 10 years of experience solely in the financial domain. He has expertise in crafting engaging and user-friendly financial content, creating SEO-friendly articles, and blogs that help businesses connect with their target audience and achieve their marketing goals. Shoppy specializes in creating financial content that is informative, engaging, and immersive, without overwhelming readers with technical terms.