Key idea
A government-backed, tax-free, long-horizon savings scheme. Low drama, low risk, and a dependable anchor for long-term goals.
The Public Provident Fund (PPF) is a government savings scheme built for the long term. It offers a fixed, government-set interest rate, complete safety, and a powerful tax status, in exchange for locking money up for many years.
The key features
| Feature | Detail |
|---|---|
| Interest rate | 7.1% a year (reviewed quarterly) |
| Tenure | 15 years (extendable in blocks) |
| Yearly limit | ₹1.5 lakh maximum |
| Tax status EEE: contributions, interest, and maturity all tax-free | |
| Eligible for | 80C deduction (old regime) |
Its standout feature is the EEE status: your contribution is deductible (under 80C), the interest is tax-free, and the maturity amount is tax-free too. Very few instruments are tax-free at all three stages. Combined with government backing, that makes PPF a dependable, risk-free anchor. Rates shown are for the Jul to Sep 2026 quarter and are reviewed quarterly. Confirm the current rate.
Its trade-off
PPF's safety comes with a long lock-in and a fixed, moderate return that may trail equity over very long horizons. It is a stability and tax-free-income tool, not a high-growth one. How it fits your plan is your decision.
Finished reading?
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