PPF: A Long Term Saving Instrument

Last Updated On: Oct. 13, 2020, 11:31 p.m.



Public Provident Fund is a popular scheme for individuals who want to earn high and get stable returns. PPF Account is a long term saving instrument which is provided by Central Government.The greatest thing about PPF is Exempt-Exempt-Exempt status.


PPF investment gives assured returns and provides old age people an income security.By investing in P.P.F Account you can see the power of compounding for a longer term/period.


Benefits of PPF:

  • Risk free, guaranteed returns
  • Multiple PPF tax benefits
  • Small savings, greater returns
  • Liquidity with partial withdrawal
  • Flexibility of Tenure
  • Low Risk
  • Easy Accessibility



  • Any person who is a resident and is above the age of 18 years age.
  • A minor can apply through Guardian.


  • Non-Resident
  • HUF
  • Foreigner


Investment Criteria:

Minimum of Rs.500 p.a and Maximum of Rs. 1,50,000 (There is no limit on number of deposits in the account)


Tenure Period:

A period of 15 years, after the completion of 15 years the account can be extended to 5 years.


Documents required:

  • Identity Proof
  • Address proof
  • Passport size photographs
  • A account opening form


Opening an Account Procedure:

  • PPF account can be opened at any Nationalised Bank and Post Office.
  • Submit Form 1 along with relevant documents
  • Only one account can be opened or created at the name of an individual or minor of whom is a guardian of.


Extension of PPF Account:

The account holder may continue to extend the period even after 15 years. The extension can be taken in blocks of 5 years and can be continued with or without deposit. The extension can be done within 1 year of maturity date of account opening.



  • 50% of the withdrawal can be made at any time after 5 years from the end of the year the account was opened.
  • This facility is available once in a year.
  • If any loan taken against PPF, then it have to be repaid before the request of withdrawal.


Loan against PPF:

  • The account holder may apply for loan against P.P.F account.
  • Loan can be applied between 3rd – 6th financial year of account opening with interest @1%.
  • Penal interest of 6% p.a. shall be charged.
  • Loans can be repaid in installments or lump sum.



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