Public Provident Fund (PPF)

Tenure: The scheme has a fixed tenure of 15 years. After maturity, the account can be extended in blocks of 5 years, with or without further contributions.
Interest Rate: For the financial year 2025-26, the PPF offers an interest rate of 7.1% per annum, compounded annually. This rate is reviewed by the government every quarter but has remained unchanged for the April-June 2025 quarter.
Investment Limits: The minimum annual deposit is ₹500, and the maximum is ₹1.5 lakh per financial year. Deposits can be made in a lump sum or in up to 12 installments per year.
Eligibility: Any Indian resident individual can open a PPF account, including on behalf of a minor. Joint accounts are not permitted, and NRIs or Hindu Undivided Families (HUFs) cannot open new accounts.
Account Opening: PPF accounts can be opened at designated banks or post offices, with a minimum opening balance of ₹100.

Contributions up to ₹1.5 lakh per annum are eligible for deduction under Section 80C of the Income Tax Act.
Interest earned and the maturity amount are completely tax-free, offering a triple tax benefit (Exempt-Exempt-Exempt status).

Partial withdrawals are allowed from the 7th financial year onwards, subject to certain conditions.
Loans can be availed against the PPF balance from the 3rd to the 6th financial year, up to 25% of the balance at the end of the second preceding year.
The account must be kept active with at least the minimum deposit each year; inactive accounts can be reactivated with penalties.

Interest is calculated monthly on the lowest balance between the 5th and the last day of each month, but credited annually on March 31st. To maximize returns, deposits should be made before the 5th of each month.

As a government-backed scheme, PPF is considered one of the safest investment options, making it ideal for conservative investors looking for steady, long-term growth and tax efficiency.