Public Provident fund (PPF) is one of most popular and widely used savings scheme in India. It comes under a EEE category which means - 1) deposits are exempt from income tax under section 80C, 2) interest is exempt from income tax, and 3) On maturity, total amount received is exempt from income tax.
|Current Interest rate||8.0% (since Oct 1, 2016)|
|Duration of scheme||15 years (and extendable in blocks of 5 years after that)|
|Minimum deposit amount (per year)||500|
|Maximum deposit amount (per year)||150000|
|Lock-in period||15 years (partial withdrawals and loans allowed)|
|Tax Status||Principal and Interest both exempt from tax|