Public Provident Fund


Opening of Account Rate of Interest
Loans & Withdrawals Maturity period
Tax Relief


Sl. No.

Name of the Scheme

Interest Maturity Period Limit of Deposit I.T.benefit Place of Deposit
  PPF 8 % 15 years Min: Rs.500
Max: Rs.70000
in a year
As announced by the Government of India from time to time
All HPO's, authorised Post Offices, SBI and  selected Nationalised Banks 


Opening Of Account

Public Provident Fund Account can be opened by any adult in his/her names or as guardian of a minor.

Such account can be opened in any Head Post-Office, G.P.O., any Selection Grade Post Office, any branch of the State Bank of India and selected branches of other Nationalised Banks.

Minimum Rs.500/- maximum Rs. 70,000 /- in a financial year Deposits can be made in lump sum or in12 monthly installments.


Rate of Interest

Deposits are payable on maturity after 15 years along with interest at the rates declared by the Government from time to time. The rate declared w.e.f.1-3-2003 is 8% per annum compounded annually.


Loans and Withdrawals

Loans can be availed from the 3rd financial year excluding the year of deposit . Amount of such loans must not exceed twenty five per cent of the amount that stood to his credit at the end of the second year immediately preceding the year in which the loan is applied for.

There is also facility to obtain withdrawal of a part of the balance after the expiry of 5 financial years from the end of the financial year (7th Financial year) in which the first subscription has been made. Such withdrawal may be made only once in a financial year and shall be limited to 50% of the balance at the close of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is lower, less the amount of loan, if any which remains to be repaid.


Maturity Period

The normal maturity period is 15 years from the close of the financial year in which the initial subscription was made. An account, on the expiry of 15 years, may be extended for every block of 5 years.


Tax Relief

Interest earned is completely free from Income Tax under section 10(a)(i)

Deposits in this account are not subject to attachment under an order or a decree of Court and are also free of Wealth Tax.