What this scheme offers
Running since 1968, PPF is a fully EEE (Exempt-Exempt-Exempt) savings scheme: your deposits (up to ₹1.5 lakh/year) qualify for a tax deduction under Section 80C, the interest earned is entirely tax-free, and the maturity amount is tax-free too — though the 80C deduction applies only under the old tax regime; interest and maturity stay tax-free under both regimes. The current interest rate is 7.1% per annum (Q2 FY2026-27), unchanged since April 2020, compounded annually and calculated monthly on your lowest balance between the 5th and last day of the month — so depositing before the 5th maximises your return. The account matures after 15 years, extendable in blocks of 5 years thereafter. A loan against your balance is available from the 3rd year (up to 25% of the balance two years prior), and partial withdrawals are permitted from the 7th year onward.
Who is eligible
- Any resident Indian individual — salaried, self-employed, or otherwise.
- A parent or legal guardian can open an account on behalf of a minor, managing deposits until the child turns 18.
- Only one PPF account is allowed per person across the country (either at a post office or a bank) — joint accounts are not permitted.
- Hindu Undivided Families (HUFs) and NRIs cannot open new PPF accounts; NRIs who opened one before becoming non-resident can continue it until maturity, but cannot extend it.
Documents required
- Aadhaar card (Aadhaar-based e-KYC is now available for account opening)
- PAN card
- Passport-size photograph
- Address proof
- Initial deposit (minimum ₹500)
How to open an account
- Choose a post office, or a nationalised or authorised private bank (SBI, PNB, ICICI, HDFC, Axis and others offer this).
- For online opening: log in to your bank's net banking or mobile app, select "Open a PPF Account," choose "Self" or "Minor," and fill in the required details with your annual deposit amount.
- For in-person opening: visit the branch with your Aadhaar, PAN, photo and address proof, and complete the application form.
- Make your initial deposit — anywhere from ₹500 to ₹1.5 lakh for the year.
- Your account is typically created instantly online, or the same day in person, with a passbook or confirmation issued.
- Set a reminder to deposit at least ₹500 every financial year to avoid the account going dormant.