How PPF works
The Public Provident Fund is a 15-year government scheme with a rate reset every quarter (7.1% in 2026). Deposits up to ₹1.5 lakh a year qualify for Section 80C, and both the interest and the maturity amount are fully tax-free, making it one of the few EEE investments in India.
Maturity example
Investing the full ₹1.5 lakh every year at 7.1% for 15 years means ₹22.5 lakh deposited and about ₹40.7 lakh at maturity. Depositing before the 5th of April each year earns interest for the whole year.
Extension, loans and withdrawals
After 15 years you can extend in 5-year blocks with or without fresh deposits. Partial withdrawals are allowed from the 7th year, and loans against the balance from the 3rd to 6th year.
Frequently asked questions
Is PPF interest fixed?
No. The government revises it every quarter, though changes are usually small.
Can I open PPF for my child?
Yes, a guardian can open a minor's account, but the ₹1.5 lakh yearly limit is combined across your own and the minor's accounts.
What if I miss a year's deposit?
The account becomes inactive; pay ₹500 minimum plus a ₹50 penalty per missed year to revive it.