Public Provident Fund Account - PPF

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

PPF Premature Closure after 5 years - Latest Rule (2016) more