The importance of financial planning in our lives can't be neglected. It helps to create a budgeted plan and achieve our short and long term goals.

Our present financial plans help us to improve our standard of living and also make us future secure. And moreover, if you are a homemaker, it becomes your moral responsibility to analyze the needs and requirements of your family and balance all the financial needs. Well, one safe solution to your financial planning journey is PPF( public provident fund).


Now without going here and there, I have covered some of the most enquired questions regarding PPF.

1. What is PPF and how it works?

Public provident fund is a popular investment scheme mandated by the government, with low-risk appetite and comparatively high returns. It is a long term investment scheme where your money is locked for certain fixed years. Since PPF is not market-linked, therefore it is safe to invest your hard-earned money in PPF, it provides guaranteed returns after the completion of your locked-in duration.

2. Can anyone open PPF?

Any Indian citizen living in the country is allowed to open the PPF account in self-name.

3. What is the PPF amount?

One needs to invest a minimum of ₹500 and a maximum of ₹1.5 lakhs in a year in the PPF account. It can be paid in installments ( maximum 12 installments allowed annually) or it can be paid in lump sum too.

4. How much interest rate can I get on my PPF account?


Which bank gives the highest interest rates in PPF?


What is the rate of return in PPF?

The interest in PPF is calculated by the Central Government of India. It provides higher interest compared to the accounts maintained by commercial banks in the country. Interest rates keep on changing, however, the current rate is 7.1% and is subject to quarterly updates at the discretion of the government. Apart from post offices, below is the list of various banks offering PPF facility:

Allahabad Bank (online facility available)

Axis Bank (online facility available)

Bank of Baroda

Bank of India (online facility available)

Bank of Maharashtra

Canara Bank (online facility available)

Central Bank of India (online facility available)

Corporation Bank

Dena Bank

HDFC Bank (online facility available)

ICICI Bank (online facility available)

IDBI (online facility available)

Indian Overseas Bank

Oriental Bank of Commerce

Punjab National Bank (online facility available)

State Bank of India (online facility available)

Syndicate Bank

Union Bank of India

United Bank of India

Vijaya Bank

5. What is the minimum lock-in period for the PPF account?


Can I withdraw PPF after 5 years?

Once you invest in PPF, your money gets locked in for 15 years and you cannot withdraw your complete money before that. After locked in period is completed, you can either withdraw your money or if you want, you can extend it in blocks of 5 years.

That means if you extend it for 5 more years, your money gets locked again for the next 5 years.

6. How to open a PPF account?

PPF account can be opened both offline and online. You can either choose any bank or post office to open your account. The interest rate and rules are the same everywhere.

Documents required

  1. Identity proof such as Aadhaar, Voter ID, Driver’s License, etc.

  2. PAN card.

  3. Address proof.

  4. Form for nominee declaration.

  5. Passport-sized photograph.

7. What are the Benefits of PPF?

Tax benefits

PPF provides the benefit of the EEE (exempt-exempt-exempt) tax model. Under section 80c, any contributions made to the PPF are tax-exempt up to 1.5 lakh annually. Also, the maturity amount and the interest received on PPF is also exempt from tax.

Loan against investment

PPF provides the benefit of availing loans against the investment. However, the loan will only be granted if it is taken at any time from the beginning of 3rd year till the end of the 6th year from the date of activation of the account. Only 25% or less of the total amount available in the account can be claimed for this purpose.

Partial withdrawal facilities

PPF allows partial withdrawal benefits, after completion of 5 years.

Flexible deposit option

There is no time limit or fixed amount to be deposited in your PPF account. You can contribute anytime and any amount as per your convenience. To maximize the benefits invest before the 5th of every month.

Risk-free investment

The rate of the PPF is not affected by the market volatility and the returns are guaranteed by the government.

8. Can I have 2 PPF accounts?

An individual is allowed to open only 1 PPF account in self-name. However, you can open another account in the name of a minor.

9. How much I will get in PPF after 15 years?

The rate of interest keeps on changing every 3 months. So as per the current interest rate i.e 7.1%, if you invest ₹1.5 lakhs annually for 15 years, you will get the amount nearly ₹ 40 lakhs as a return. However, if you extend it further for 5 more years, you will get the return of about ₹66 lakhs.

10. How can I check my PPF balance?

PPF balance can be checked both offline and online. To check offline, you can visit the nearest branch of the bank in which you have opened your PPF account. And for an online one can make use of a bank’s online facilities available 24×7. You only have to log in using your credentials and check your balance in the PPF section.


There are various PPF calculators available online, you can easily find out the return amount as per the principal amount you are investing and whatever the current interest rate is. You can use any of the below tools:

Groww PPF Calculator

HDFC PPF Calculator

I really hope that this was helpful to you. Let us know your thoughts and ideas in the comments below!

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