Public Provident Fund (PPF) Rules
How the PPF works: yearly deposit limit, 15-year lock-in, interest, partial withdrawals, extension, and tax treatment.
The Public Provident Fund is a government-backed savings scheme known for safety and tax-free returns. It suits long-term, low-risk goals such as retirement.
Key rules
- Deposit limit: a minimum of ₹500 and a maximum of ₹1.5 lakh per financial year, across all your PPF accounts.
- Tenure: 15 years, extendable in blocks of 5 years, with or without further deposits.
- Interest: set by the government every quarter, compounded yearly. Check the current rate before relying on any old figure.
- Who can open: resident individuals, one account each. You can also deposit for a minor.
Deposit before the 5th
Interest is calculated on the lowest balance between the 5th and the end of each month. Depositing before the 5th means that month's deposit earns interest. If you invest yearly, depositing in early April gives the full year of interest.
Withdrawals and loans
A partial withdrawal is allowed from the seventh financial year, subject to a cap based on your balance a few years earlier. A loan against the balance is available in the early years. Premature closure is allowed only in specific cases, such as serious illness or higher education, under current rules.
Tax
PPF has the exempt-exempt-exempt treatment: deposits qualify under Section 80C in the old regime, interest is tax-free, and the maturity amount is tax-free. See what it can grow to with the PPF calculator.
Where it fits
Compare it with market-linked retirement saving in the PPF vs NPS guide and with EPF. The rate is not fixed for the full term, so projections are estimates.
Rules and rates change. Confirm with the post office, your bank, or the official scheme notification.
Frequently asked questions
Can I invest more than ₹1.5 lakh in PPF?
You can deposit more, but only up to ₹1.5 lakh a year earns interest and counts for deduction. Check current rules for how excess amounts are treated.
Is the PPF interest rate fixed for 15 years?
No. The government revises the rate quarterly, so your return can change over the term.
More guides
Calculators
Last reviewed: October 2026. General education, not financial advice.