Want us to help you with anything?
Request a Call back

This field is required Only alphabetes are allowed
This field is required Only alphabetes are allowed
Please enter valid number
Please enter valid email
Please select product type
Please enter valid pincode

Thank you for your request.

Your reference number is CRM

Our executive will contact you shortly


2 mins Read | 5 Years Ago

Basics things you should know about PPF



While most investors prefer equity investments to generate high returns, any diverse portfolio is just incomplete without highly secure, fixed-income securities. Public Provident Fund (PPF) Schemes are a go-to option for investors looking for decent, fixed returns with maximum security and tax benefits. While opening a PPF Account is now easier than ever, there are a few essential things that every investor should know before investing. Five such important PPF scheme details are:

1. Investment Amount

As per the rules of PPF, the minimum investment amount in PPF can be Rs 500 and the maximum can be Rs 1.5 lakh in a year. This maximum limit applies to all the PPF accounts held by you and even by a minor which has you as the guardian.

Investors can invest a lump sum amount or go for monthly contributions which can only be up to 12 in a year.

2. PPF Maturity

PPF maturity period in India is 15 years. After completion of this duration, you can extend it in the blocks of 5 years. As per the PPF scheme rule, the last date of the completion of the financial year is taken as the date of commencement, irrespective of the month of the fiscal year in which you invested.

For instance, if you started investing in PPF in October 2018, the calculation will be done from March 31, 2019. This means that the 15-year maturity will be on April 1, 2034.

3. PPF Interest Rate

The PPF interest rate is directly linked to the yields of 10-year government bonds and thus change on a regular basis. Currently, the annual interest you earn for your PPF investment is 8%. The interest is annually compounded and not paid to the investor.

This makes it one of the best options for achieving long-term financial objectives like retirement planning.

4. Tax Benefits

One of the reasons for the widespread popularity of PPF in India is the tax benefits it offers. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. All the contributions made to a PPF scheme in India are eligible for deductions under Section 80C of the IT Act. The interest that you earn over the 15 years duration is entirely exempt from tax.

In other words, all the proceeds at the end of the maturity period including your investment and the interest earned are exempt from tax.

5. Loan Against PPF

As per PPF scheme rules, loan facility is also available with PPF account between the 3rd and 6th financial year of your investment. The first loan can be taken after three years from the investment. The loan amount can be up to 25% of the amount you have invested by the end of the 2nd year.

After repaying this loan, you can take another loan before completion of the 6th year of your investment.

Starting a PPF

Now that you know the PPF investment amount, maturity date, and what is PPF interest rate, you are all set to begin investing in PPF. Select any reputed bank and visit their official website to open a PPF account. With online PPF account, you can now start investing in PPF instantly and in a hassle-free manner.



The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially. The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.

People who read this also read

View All


View All
2 mins Read | 5 Years Ago
How to Set a Goal for Investment

Scroll to top