Frequently Asked Questions
What is the Public Provident Fund (PPF)?
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The PPF is a government-backed savings scheme that offers tax benefits u/s 80C under old tax regime and high interest rates.
What is the current interest rate on PPF?
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Although The interest rate for PPF is set quarterly by the government. As of now, the rate is 7.1% per annum compounded on yearly basis
What is the minimum and maximum deposit amount for PPF?
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The minimum deposit is ₹500 per year, and the maximum deposit allowed is ₹1.5 lakh per year in Public Providend Fund Scheme
How long is the PPF maturity period?
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The standard PPF maturity period is 15 years. However You can extend it in blocks of 5 years after maturity.
Can I withdraw funds from my PPF account before maturity?
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Partial withdrawals are allowed after the 7th year for some specific purpose like medical emergency, education, buy home etc.
Can I take a loan against my PPF balance?
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Yes, you can take a loan against your PPF balance from the 3rd to the 6th year at rate of interest 1% higher then prevailing PPF rate of interest.
Is PPF maturity amount taxable?
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No, PPF comes under the EEE (Exempt, Exempt, Exempt) category. Contributions, interest earned, and the maturity amount are all income tax-exempt.
What happens if I miss a PPF contribution?
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If you miss contributing in any financial year, your account becomes inactive. To reactivate, you must have pay a penalty of ₹50 per missed year along with the minimum contribution of ₹500.
Can NRIs invest in PPF?
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NRIs cannot open new PPF accounts. However, if an NRI has an active PPF account, they can continue until it matures subject to new change applicable e.f. 1st OCT 2024.
What is the lock-in period for PPF?
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The lock-in period is 15 years, though partial withdrawals and loans are available after a certain period.
