Public Provident Fund PPF

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Category - Senior Citizen Money and Taxes

PPF is a savings scheme is fully guaranteed by the Central Government of India.

Eligibility
Residents of India are eligible. NRIs are not eligible

Contributions
Max Contributions of Rs. 1.5 lakhs a year. Minimum deposit is Rs. 500.

How to open
Can be opened at any govt bank, selected authorized private banks or post office

Interest Rate
Govt of India sets rate every quarter. For 2021 it is set for 7.1% annually. Interest is tax free.

Maturity period
15 years after which in can be extended for 1 or 5 years

Loans on PPF
Loans can be made against PPF

Withdrawals
The entire balance can be withdrawn after maturity period of 15 years tax free.
If one needs to withdraw early, upto 50% of deposits available after 4years