{"id":4486,"date":"2023-04-18T19:25:59","date_gmt":"2023-04-18T13:55:59","guid":{"rendered":"https:\/\/fatakpay.com\/blog\/?p=4486"},"modified":"2026-01-23T15:53:47","modified_gmt":"2026-01-23T10:23:47","slug":"what-is-ppf","status":"publish","type":"post","link":"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/","title":{"rendered":"What is PPF?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Introduction_to_PPF_account\" >Introduction to PPF account:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#More_about_PPF\" >More about PPF:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Eligibility_to_Open_a_PPF_account\" >Eligibility to Open a PPF account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Documents_required_for_PPF_account\" >Documents required for PPF account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#What_is_the_interest_rate_on_PPF\" >What is the interest rate on PPF?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Features_of_a_PPF_Account\" >Features of a PPF Account:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Tenure\" >Tenure:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Eligibility\" >Eligibility:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Number_of_Accounts\" >Number of Accounts:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Minimum_and_Maximum_Investment_amount\" >Minimum and Maximum Investment amount:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Deposit_frequency\" >Deposit frequency:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Mode_of_deposit\" >Mode of deposit:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Risk\" >Risk:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Nomination\" >Nomination:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#About_FatakPay\" >About FatakPay:&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.fatakpay.com\/blog\/learn-finance\/what-is-ppf\/#Explore_More_Financial_Planning_Tools\" >Explore More Financial Planning Tools:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_to_PPF_account\"><\/span>Introduction to PPF account:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Public Provident Fund<\/strong> (PPF) account was a program that the National Savings Institute introduced in 1968. It belongs to the post office&#8217;s lineup of savings plans. PPF is backed by the government, thus returns are certain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"More_about_PPF\"><\/span>More about PPF:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The National Savings Institute created the <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Public Provident Fund<\/mark>, a post office savings program. Some private and nationalised banks, though, are permitted to accept PPF investments. It is backed by the government. \u00a0 7.1% (FY 2022-23) is the PPF Interest Rate for the current quarter.<\/p>\n\n\n\n<p>Every year on March 31, the interest is paid. However, between the fifth and the thirty-first of each month, the interest is calculated on the minimum PPF balance. The lock-in period for Public Provident Fund is 15 years.<\/p>\n\n\n\n<p>Public Provident Fund accepts investments from all <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Indian Citizens<\/mark>. HUFs and NRIs cannot, however, open an account.<\/p>\n\n\n\n<p>Additionally, PPF enables investors to borrow money against their PPF investments. Between the third and fifth years, there is a loan facility accessible. On the bank&#8217;s website, one can apply for a loan online.<\/p>\n\n\n\n<p>One PPF account can be opened by each investor. There can be only one PPF account. A flat sum or twelve separate installments are both options for investors. The minimum and maximum investments are Rs.500 and Rs.1,50,000 respectively. However, some banks just require a minimum deposit of Rs.100 to create a PPF account. <\/p>\n\n\n\n<p>To keep their PPF account active, investors must make a minimum investment of Rs.500. Investors must pay Rs.50 as a penalty and&nbsp; Rs.500 for that particular year to reactivate their account if they don&#8217;t comply, otherwise their account will be terminated.<\/p>\n\n\n\n<p>Under Section 80C of the Income Tax Act, investments in <strong>Public Provident Fund<\/strong> up to INR 1,50,000 are eligible for a tax deduction. The <strong>PPF Scheme&#8217;s<\/strong> returns are totally tax-free.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_to_Open_a_PPF_account\"><\/span>Eligibility to Open a PPF account<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The investor must fulfil the following <strong>eligibility requirements<\/strong> in order to open a PPF account:<\/p>\n\n\n\n<p>An Investor can have only one account. On behalf of a minor, one can open a different account, nevertheless.<\/p>\n\n\n\n<p>Non-resident Indians (NRIs) and Hindu Undivided Families (HUFs) are unable to open PPF accounts<\/p>\n\n\n\n<p>Investors must next fill out the application form, attach the required documentation, and send the required deposit to open the account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_PPF_account\"><\/span>Documents required for PPF account<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following documentation must be provided when opening a PPF account:<\/p>\n\n\n\n<p><strong>Application for PPF Scheme<\/strong><\/p>\n\n\n\n<p>Identity documentation, such as an <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">Aadhaar card<\/mark>, PAN card, passport, or driver&#8217;s licence<\/p>\n\n\n\n<p>Address verification (such as a passport or Aadhaar card)<\/p>\n\n\n\n<p><strong>Signature Evidence<\/strong><\/p>\n\n\n\n<p>The investor must deposit the investment amount for the PPF account opening after submitting the required paperwork.<\/p>\n\n\n\n<p>Only with the bank using internet banking is it possible to open a PPF account online. Post offices do not offer internet banking services for opening PPF accounts online.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_interest_rate_on_PPF\"><\/span>What is the interest rate on PPF?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every three months, the <strong>Ministry of Finance releases<\/strong> the PPF Scheme interest rates. PPF now has an interest rate of 7.10% per year (FY 2022-23).<\/p>\n\n\n\n<p>The PPF account balance is used to calculate the interest rate. The minimum balance in an investor&#8217;s account between the fifth and last day of each month is used to compute the interest on the PPF Scheme.<\/p>\n\n\n\n<p>Therefore, it is preferable to make PPF deposits by the fifth of the given month, if not earlier.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_a_PPF_Account\"><\/span>Features of a PPF Account:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tenure\"><\/span>Tenure:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A PPF account must be open for at least 15 years. But the investor has the choice to make the length longer by a block of five years. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility\"><\/span>Eligibility:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>All Indian citizens are eligible. NRI Indians and Hindu Undivided Families (HUFs) cannot open PPF accounts, though.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Number_of_Accounts\"><\/span>Number of Accounts:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>There can only be one PPF account per person. On behalf of a minor, they can open a different account, nevertheless.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_and_Maximum_Investment_amount\"><\/span>Minimum and Maximum Investment amount:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The minimum investment needed is INR 100. Additionally, the minimal investment is INR 500 each year. The maximum annual investment, however, is INR 1,50,000. The investors receive no interest on investments over INR 1,50,000.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deposit_frequency\"><\/span>Deposit frequency:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Deposits must be made either annually or in a maximum of 12 installments per year. To keep the PPF account active for 15 years, there must be at least one deposit made.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mode_of_deposit\"><\/span>Mode of deposit:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p> Demand draft, cheque, or cash.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risk\"><\/span>Risk:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The <strong>Public Provident Fund<\/strong> (PPF) has the support of the Indian government. As a result, it ranks among the most secure investment options for private investors. PPF returns that are guaranteed and risk-free. It provides capital protection as well. Therefore, there is less risk associated with investing in PPF Schemes.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nomination\"><\/span>Nomination:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Investors can designate a nominee for their accounts. They can either do so when they first open their PPF account or afterwards.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"About_FatakPay\"><\/span>About FatakPay:&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/fatakpay.com\/\" target=\"_blank\" rel=\"noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\"><strong>FatakPay<\/strong><\/mark><\/a> provides <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">small credit<\/mark> facilities for all. It&#8217;s available on your phone and caters to your everyday needs in both online and offline formats. Payments are done seamlessly through <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-black-color\">UPI<\/mark>\/QR codes. The solution provides an almost zero cost, free, quick, transparent and secure way to transact in a multilingual format with a Scan Now, Pay Later facility and easy repayment options.<\/p>\n\n\n\n<p>Link to FatakPay App: <mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/link.ftkp.in\/2uSI\/dkasgvnf\" target=\"_blank\" rel=\"noopener\">https:\/\/link.ftkp.in\/2uSI\/dkasgvnf<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explore_More_Financial_Planning_Tools\"><\/span><strong>Explore More Financial Planning Tools:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To better understand various investment options and secure your financial future, check out these insightful blogs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/fatakpay.com\/blog\/what-is-nps\/\" target=\"_blank\" rel=\"noopener\">What is NPS?<\/a><\/strong> \u2013 Learn about the National Pension System and how it can help you plan for a comfortable retirement.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/fatakpay.com\/blog\/what-is-sukanya-samriddhi-yojana\/\" target=\"_blank\" rel=\"noopener\">What is Sukanya Samriddhi Yojana?<\/a><\/strong> \u2013 Understand how the Sukanya Samriddhi Yojana can help secure your daughter\u2019s future with a government-backed savings scheme.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n<p><\/p>\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"BlogPosting\",\n  \"headline\": \"What is PPF?\",\n  \"description\": \"Explore the Public Provident Fund (PPF) \u2014 its benefits, interest rates, and how it helps you build long-term savings securely.\",\n  \"image\": \"https:\/\/fatakpay.com\/blog\/wp-content\/uploads\/2023\/04\/PPF-Blog-1.jpg\",\n  \"datePublished\": \"2023-04-18\",\n  \"dateModified\": \"2023-04-18\",\n  \"mainEntityOfPage\": {\n    \"@type\": \"WebPage\",\n    \"@id\": \"https:\/\/fatakpay.com\/blog\/what-is-ppf\/\"\n  },\n  \"author\": {\n    \"@type\": \"Organization\",\n    \"name\": \"FatakPay Digital Pvt. 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More about PPF: The National Savings Institute created the Public Provident Fund, a post office<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[260],"tags":[97,103,125,124],"class_list":{"0":"post-4486","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-learn-finance","7":"tag-fatakpay","8":"tag-investments","9":"tag-long-term-investments","10":"tag-ppf"},"_links":{"self":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/4486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/comments?post=4486"}],"version-history":[{"count":11,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/4486\/revisions"}],"predecessor-version":[{"id":7465,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/posts\/4486\/revisions\/7465"}],"wp:attachment":[{"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/media?parent=4486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/categories?post=4486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fatakpay.com\/blog\/wp-json\/wp\/v2\/tags?post=4486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}