Public Provident Fund (PPF)

Public Provident Fund (PPF) is a safe investment vehicle with lower risk that enables one to accumulate a retirement corpus through a steady return of 7.1% per annum. An investment in PPF also makes taxpayers eligible to claim tax deductions up to Rs. 1.5 lakh under  Section 80C thus reducing tax liability. Anyone looking for a safe investment option to save taxes and earn guaranteed returns should open a PPF account.

PPF Latest Updates

  • Public Provident Fund (PPF) scheme is a long-term investment option that offers an attractive rate of interest and returns on the amount invested.
  • The interest earned is not taxable under Income tax 
  • One has to open a PPF account under this scheme and the amount deposited during a year will be claimed under section 80C deductions.

PPF Scheme Key Highlights

Any person wanting to invest in PPF can start with a minimum investment of Rs. 500. However, the maximum amount that one can invest is Rs. 1.5 per year. The following table provides some of the key information regarding PPF: 

Interest Rate7.1% per annum.
Minimum Investment Amount
Rs.500
Maximum Investment AmountRs 1.5 lakh per annum.
Tenure
15 years
Risk Profile
Offers guaranteed, risk-free returns
Tax BenefitUp to Rs.1.5 lakh under Section 80C