PPF key features
| Feature | Detail |
|---|---|
| Minimum investment | ₹500/year |
| Maximum investment | ₹1,50,000/year |
| Interest rate | 7.1% p.a. (Q1 FY 2024-25, set quarterly by govt) |
| Compounding | Annually |
| Lock-in | 15 years (extendable in 5-year blocks) |
| Tax benefit | EEE — investment (80C), interest, and maturity are all tax-free |
FAQ
Can I withdraw before 15 years?
Partial withdrawal is allowed from the 7th year (up to 50% of balance at the end of the 4th year). Full withdrawal is only at maturity (15 years). Loans against PPF are available from the 3rd to 6th year.
Can I extend beyond 15 years?
Yes. PPF can be extended in blocks of 5 years indefinitely. You can choose to extend with or without further contributions.