Note (updated 6 November 2026): PPF interest rates, limits and rules are set by the government and can change. Check the current rate and limits with your bank or post office before investing. For tax planning this year, see our old vs new tax regime guide, the income tax calculator for tax year 2026-27 and advance tax 2026-27 guide.
This guide on public provident fund ppf explains the key points in plain language. Use the contents list below to jump to the section you need, and confirm the details on the official source listed at the end before you act.
Table of Contents
The Public Provident Fund is a government-backed savings scheme introduced in 1968 with the objective of promoting small savings among citizens and ensuring financial security during retirement. Administered by the Ministry of Finance, PPF offers an attractive interest rate, compounded annually, and comes with a lock-in period of 15 years. However, investors have the flexibility to extend the tenure in blocks of five years beyond the initial period.
Features of PPF Account
1. Tenure: PPF has a fixed 15-year tenure, extendable in 5-year blocks, providing a stable long-term investment avenue.
2. Investment Limit: Investors can deposit Rs. 500 to Rs. 1.5 lakh annually, offering flexibility in contribution amounts.
3. Interest Rate: Government-determined interest rates, compounded annually, make PPF an attractive choice for secure, high-yield investments.
4. Tax Benefits: Contributions are eligible for Section 80C deductions, and interest earned and maturity amount are tax-free, ensuring triple exemption.
5. Government Backing: PPF is a government-backed savings scheme, ensuring the safety of the principal amount and interest earned.
6. Account Types: Individual accounts, including minors with guardians, are allowed; joint, HUF, and POA accounts are not permissible.
7. Nomination Facility: Account holders can nominate individuals to receive proceeds in case of demise, ensuring proper succession planning.
8. Loan Facility: After the sixth year, account holders can avail loans against PPF balances, offering a convenient liquidity option.
9. Partial Withdrawals: Permitted from the seventh year, subject to conditions, allowing flexibility for meeting financial needs during the investment period.
10. Account Extension: Post 15 years, the account can be extended in 5-year blocks indefinitely, offering long-term wealth creation opportunities.
Who Is Eligible to Open PPF Account?
The eligibility criteria for opening a Public Provident Fund (PPF) account in India are as follows:
Residential Status: Any resident individual, including Indian citizens and Hindu Undivided Families (HUFs), is eligible to open a PPF account.
Age Limit: PPF accounts can be opened by individuals of any age, from minors to senior citizens.
Minors: A parent or legal guardian can open a PPF account on behalf of a minor. Minors themselves are not eligible to open the account.
Non-Resident Indians (NRIs): NRIs are not eligible to open a new PPF account. However, if an individual becomes an NRI after opening a PPF account, they can continue to contribute until maturity but cannot extend the account.
Hindu Undivided Families (HUFs): HUFs are not eligible to open a PPF account. Only individual residents can open PPF accounts.
Number of Accounts: An individual can have only one PPF account in their name, except for an account opened on behalf of a minor, which can be opened by the parent/guardian.
Joint Accounts: Joint accounts, with more than one individual as account holders, are not permissible for PPF accounts.
Power of Attorney (POA): Opening a PPF account through a Power of Attorney is not allowed. The account holder must be the individual contributing to the account.
Citizenship: PPF is primarily designed for Indian residents, and only residents can open new PPF accounts. Non-residents, including NRIs, are not eligible for new accounts.
Nomination: Nomination facilities are available, allowing the account holder to nominate individuals who will receive the proceeds in the event of their demise.
It’s important to note that PPF accounts can be opened at designated banks and post offices across India. The eligibility criteria are designed to ensure that the PPF scheme remains accessible to individual residents, promoting savings and financial security.
Official source for public provident fund ppf
Always verify current rules, dates and forms on the official website: Income Tax Department. For help applying this to your own case, see our professional services.
More in Personal Finance
Personal FinanceCredit Score for Business Loans: What It Means and How to Improve It
Personal FinanceSIP and Compound Interest Explained: How Regular Investing Grows Over Time
Personal FinanceExport Declaration Form (EDF) for Service Exports in India: Rules, Applicability, Filing Process and Deadlines 2026
- Old vs new tax regime: how to decide which suits you
- Presumptive taxation for small businesses and professionals
- Tax audit under the Income-tax Act, 2025: Form 26 and Section 63
- TDS and TCS return Forms 138, 140, 143 and 144 explained
- Free tax and finance calculators
We handle these for individuals, businesses and NRIs across India:
