Post Office Public Provident Fund (PPF): 500 rupees investment and 1 crore return, never seen such a great schemePost Office Public Provident Fund

Post Office Public Provident Fund

The Post Office Public Provident Fund, commonly known as PPF, is a government-backed long-term investment scheme. It appeals to individuals who prioritize the safety of their investments and offers a fixed interest rate, making it an attractive choice for many. The current interest rate for Post Office PPF stands at 7.1% (Q1 FY 2021-22).

Key Information

  • Scheme Name: Public Provident Fund Scheme
  • Beneficiaries: All Indian citizens
  • Minimum and Maximum Investment: ₹500 per annum to ₹1.5 lakh per annum
  • Investment Period: 15 years
  • Interest Rate: 7.1%
  • Official Website:

Benefits of Opening a Post Office Public Provident Fund

A Post Office PPF account offers numerous financial and tax-saving advantages, making it a preferred choice for a wide range of investors.

  1. High-Interest Rates: PPF offers one of the highest interest rates among all savings schemes in India. The current rate is 7.1%, ensuring your money grows significantly.
  2. Government-Backed: The scheme is backed by the Indian government, providing a guarantee of returns and security for your investments.
  3. Affordable Investment: With a minimum annual investment of ₹500, PPF is accessible to people from all income groups.
  4. Triple Tax Benefit: PPF investments qualify for the EEE benefit, where the principal amount, interest earned, and maturity amount are all tax-exempt.
  5. Long-term Investment: With a maturity period of 15 years, PPF serves as an excellent option for long-term financial planning, especially for retirement.
  6. Premature Withdrawal: While PPF is a long-term commitment, investors can make partial withdrawals after five years, providing liquidity when needed.
  7. Loan Facility: Investors can also avail loans against their PPF accounts, making it a versatile option.
  8. Premature Closure: Under specific situations, it’s possible to close the PPF account prematurely.


The scheme is open to all Indian citizens, provided they meet the following conditions:

  • A resident Indian citizen can open an account under this scheme.
  • A guardian can open an account on behalf of a minor or a person of unsound mind.

Features of the Scheme

Here are some key features of the Post Office Public Provident Fund account:

  • You can open the account by depositing cash or cheque.
  • Only one account is allowed in the name of an individual in all post offices across the country.
  • The minimum deposit in a financial year is ₹500, with a maximum of ₹1.5 lakhs.
  • Deposits can be made in any installment, in multiples of ₹50.
  • The deposited amount is exempt from tax under Section 80C of the IT Act.
  • Interest rates are fixed, with the current rate at 7.1%. The Ministry of Finance decides the interest rate quarterly.

Maturity and Withdrawals

The PPF account matures after 15 years. At maturity, investors have several options:

  1. Close the account and receive the maturity payment.
  2. Retain the maturity amount without making further deposits.
  3. Extend the account for a block of 5 years and above (within one year of maturity) by submitting an extension form.

Partial Withdrawals in PPF

To ensure accessibility of funds when required, PPF allows one partial withdrawal every five years, excluding the account’s opening year. The withdrawal amount is capped at 50% of the credit balance at the end of the fourth previous year or the end of the previous year, whichever is less.

Premature Closure

The PPF account can be prematurely closed under certain circumstances, including:

  • Life-threatening illness of the account holder, family members, or minor children.
  • Higher education of the account holder or dependent children.
  • A change in the account holder’s residential status (e.g., becoming an NRI).

In the case of premature closure, 1% interest will be deducted from the date of account opening/extension.

Click here for apply

How to Open a Post Office PPF Account

Opening a PPF account is a straightforward process. You can visit any post office near you and follow these steps:

  1. Submit a duly filled application form.
  2. Provide the necessary KYC documents.
  3. Include a passport-size photograph for your passbook.
  4. The required documents typically include ID proof, PAN card, proof of residential address, a declaration of nominee, and a passport-size photograph.

Account Holder’s Demise

In the unfortunate event of the account holder’s premature demise:

  • The account will be closed, and no further deposits can be made.
  • PPF interest will be calculated at the end of the respective month when the account is closed due to death.

Frequently Asked Questions

  1. What is the penalty for premature closure of a Post Office PPF account?
    • In the case of early closure, 1% interest will be deducted from the date of account opening/extension, as applicable.
  2. Can I get guaranteed returns from my Post Office PPF account?
    • There is no guarantee of maturity in this scheme. However, this scheme is backed by the government and ensures the safety of your principal amount. It also offers the highest interest rates in the market.
  3. Can I take a Post Office PPF account for less than 15 years?
    • No, this plan comes with a fixed tenure of 15 years. However, you can make partial withdrawals once in a financial year to meet any emergency needs.
  4. Can I transfer my Post Office PPF account from one post office to another post office?
    • Yes, you can transfer your PPF account to any post office in India.

In conclusion, the Post Office Public Provident Fund (PPF) is a reliable, government-backed investment scheme that combines long-term financial growth with tax-saving benefits. Its flexibility and the potential for substantial returns make it an excellent choice for investors seeking financial security and stability. So, why wait? Secure your future and start your PPF journey today.

Click here for apply

Leave a Reply

Your email address will not be published. Required fields are marked *