Public Provident Fund Definition

PPF, or Public Provident Fund, is a popular savings scheme in India that offers attractive interest rates and tax benefits. It is a long-term investment option backed by the government, making it a safe and secure choice for individuals looking to build wealth over time.

How Does Public Provident Fund Work?

Individuals can open a PPF account with any authorized bank or post office in India. The minimum contribution amount is Rs. 500, with a maximum yearly deposit limit of Rs. 1.5 lakh. The account has a maturity period of 15 years, and investors have the option to extend it in blocks of 5 years.

PPF Key Features:

– Guaranteed returns: PPF offers fixed and tax-free returns, making it a reliable investment option.
– Tax benefits: Contributions made towards PPF are eligible for tax deductions under Section 80C of the Income Tax Act.
– Flexible investment options: Investors can choose to deposit a lump sum amount or make monthly contributions towards their PPF account.
– Loan facility: After completing 3 years, investors can avail of loans against their PPF balance.