Public Provident Fund (PPF) is a government-backed long-term savings scheme that offers an attractive interest rate with sovereign guarantee. It was introduced by the National Savings Institute of the Ministry of Finance in 1968. PPF is one of the most popular tax-saving investment options in India, offering complete tax exemption on investment, interest, and maturity amount.

The current PPF interest rate is 7.1% per annum (compounded yearly). The interest rate is reviewed and notified by the government every quarter. Despite fluctuations in interest rates, PPF has historically offered better returns compared to many other fixed-income instruments with similar safety profiles.

PPF interest is calculated on the lowest balance between the 5th day and the last day of each month. The interest is then credited to the account at the end of each financial year (March 31st). The interest is compounded annually, which means the interest earned in previous years also earns interest in subsequent years, significantly boosting the final corpus over the long term.

The minimum investment amount in PPF is ₹500 per financial year, while the maximum investment is capped at ₹1,50,000 per financial year. You can invest in a lump sum or in installments (maximum 12 installments per year). The flexibility in investment amount allows individuals from various income groups to benefit from this scheme.

The lock-in period for PPF is 15 years. After the completion of 15 years, you have three options:

1. Withdraw the entire amount and close the account
2. Withdraw any amount and keep the account active without making any further contributions
3. Extend the account in blocks of 5 years with or without making further contributions

Yes, partial withdrawals are allowed from the 7th financial year onwards. The maximum withdrawal amount allowed is the lesser of:

1. 50% of the balance at the end of the 4th preceding financial year, or
2. 50% of the balance at the end of the immediate preceding financial year

Only one withdrawal is permitted per financial year. Premature closure of the account is allowed only in specific cases like serious illness, higher education, or change in residency status.

PPF offers triple tax benefits under the EEE (Exempt-Exempt-Exempt) category:

1. Investment up to ₹1,50,000 qualifies for tax deduction under Section 80C of the Income Tax Act
2. Interest earned is completely tax-free
3. Maturity amount is exempt from tax

This makes PPF one of the most tax-efficient investment options in India, especially for those in higher tax brackets.

No, an individual can have only one PPF account in their name. However, you can open a PPF account for a minor child (under 18 years) in addition to your own account. The combined contribution to your account and the minor's account should not exceed the annual limit of ₹1,50,000.