PPF is short form of Public Provident Fund is a kind of saving account that is exempt from tax in India. Public Provident Fund is usually open by employee working in goverment or private sectors, however businessman also do maintain PPF account in India as it help to save tax.



Any Indian citizen who is employee or self-employed can open PPF account and can invest amount to get attractive interest rates that is exempt from tax. It’s also considered one of the best plan to save tax under income tax section 80c. Another best part is whatever the interest gain on PPF account would be tax free that means you won’t have to pay tax on earned amount.


What’s the minimum amount to open PPF Account?

As little as Rs 100 – yes, that’s true, you can open a PPF account in State Bank of India with just Rs 100. You can also open PPF account in any branches of these banks as well – Bank of India, Bank of Baroda, IDBI Bank, Central Bank of India etc.

What is the minimum and maximum limit for PPF account? 

You will have to deposit minimum of Rs 500 on every financial year, this is the minimum amount that you have deposit. While Rs 1,00,000 is the maximum amount that can be deposited in one financial year. You can pay all at once or monthly installment as per your convenience.



What is the interest rates available on PPF?

Interest rates changes every financial year. Current interest rates on PPF is 8.8% that has been revised on 1st of April 2012.

Can NRI maintain PPF Account?

Please note that NRI is not allowed to open PPF Account. For example if you are NRI and want to open PPF account then it won’t possible however if you are living in India, open a PPF account and later became NRI then you are allowed to maintain and carry on PPF account.

What is the minimum locking period of PPC a/c?

You will have to maintain it for at least 5 years in order to withdraw the fund. Please note that all amount can’t be withdraw before maturity i.e. 15 years, however in case of emergency you care allowed to withdraw a portion of deposit.

Premature withdrawal?

As said above, 5 year is the locking period of PPF account and after 5 years only you can withdraw the fund in case of financial crises.

Where I can download Premature withdrawal form? Click here