Government Guaranteed
Public Provident Fund (PPF)
India's safest long-term savings instrument with guaranteed returns, sovereign guarantee, and complete tax exemption under EEE (Exempt-Exempt-Exempt) category.
PPF Key Features
Current Interest Rate7.1% p.a. (Q1 FY25)
Lock-in Period15 years
ExtensionIn blocks of 5 years after maturity
Minimum Investment₹500 per year
Maximum Investment₹1.5 Lakh per year
Tax BenefitSection 80C (up to ₹1.5 Lakh)
Interest EarnedTax-free
Maturity AmountTax-free
Loan FacilityFrom 3rd to 6th year
Partial WithdrawalFrom 7th year onwards
Who Can OpenIndian residents (1 per person)
Risk LevelZero (Government Guaranteed)
EEE Tax Benefit (Triple Exempt)
E1
Investment is Tax-Deductible
Up to ₹1.5 Lakh deduction under Section 80C
E2
Interest is Tax-Free
Annual interest earned is completely exempt from tax
E3
Maturity is Tax-Free
Entire maturity amount is exempt from income tax
₹1.5 Lakh/year for 15 years at 7.1%
Total Investment₹22,50,000
Interest Earned₹18,18,209
Maturity Value₹40,68,209
*Based on current rate of 7.1%. Rates are revised quarterly by the Government.
Pro Tip: Invest your PPF amount before the 5th of every month to earn interest for that entire month. PPF interest is calculated on the minimum balance between the 5th and the last day of each month.