Why PPF remains special
PPF is one of the few EEE (exempt-exempt-exempt) instruments in India: your deposit qualifies for the 80C deduction (old regime), the interest is tax-free, and the maturity amount is tax-free. It's government-backed, so there is no credit risk.
- Limits: minimum ₹500 and maximum ₹1.5 lakh per financial year.
- Tenure: 15 years, extendable in 5-year blocks (with or without fresh deposits).
- Rate: set by the government every quarter (7.1% has been the prevailing rate for several years — the rate field above is editable, so use the current quarter's rate).
- Liquidity: partial withdrawals from year 7; loans against balance from year 3.
Deposit before the 5th of each month (or on 1–5 April for a lump sum) — PPF interest for a month is computed on the lowest balance between the 5th and month-end.
FAQs
Can I invest more than ₹1.5 lakh a year?
No — ₹1.5 lakh per financial year is the ceiling across your own and minor-child accounts combined. Excess deposits earn no interest.
What happens after 15 years?
You can withdraw the full corpus tax-free, or extend in 5-year blocks. Extensions without deposits keep earning interest on the full balance.
Is PPF better than ELSS?
They serve different goals: PPF is guaranteed and tax-free; ELSS is market-linked with a 3-year lock-in and historically higher (but variable) returns. Many investors hold both.