The Public Provident Fund (PPF) is the gold standard of long-term savings in India. It is the only investment that is EEE — Exempt, Exempt, Exempt — meaning your contribution saves tax (80C), the interest earned is tax-free, and the maturity amount is also fully tax-free. No other guaranteed investment offers this.
PPF has a 15-year lock-in, which sounds long but is actually its strength — it forces long-term thinking and protects your money from impulsive withdrawals. Partial withdrawal is allowed from year 7, and loans can be taken from year 3.
The government cannot attach or seize a PPF account even in case of debt recovery proceedings — making it one of the safest wealth-preservation tools available.
Who Should Invest?
- Anyone in the 20% or 30% tax bracket building long-term wealth
- Self-employed individuals who don't have access to EPF
- Parents building a corpus for a child's education or marriage (open a PPF in the child's name)
- Anyone who wants a guaranteed, completely tax-free retirement fund
Key Features
- EEE tax status — contribution, interest, and maturity all tax-free
- 15-year tenure, extendable in 5-year blocks indefinitely
- Minimum: ₹500/year. Maximum: ₹1.5 lakhs/year (per account).
- Partial withdrawal allowed from year 7
- Loan against PPF available from year 3 to year 6
- Cannot be attached by court orders or creditors
- Can be opened for a minor child (limit counts towards parent's ₹1.5L cap)
Watch Out For
- 15-year lock-in — not suitable for funds you may need before that
- Interest rate is set by the government quarterly — not fixed for the full 15 years
- NRIs cannot open new PPF accounts (existing accounts can be maintained until maturity)
Compare All NSS Schemes
See how PPF compares to all other National Savings Schemes in one table.
← View All NSS Interest Rates
