The public provident fund (PPF) is a top choice when planning your finances for retirement. Launched in 1986 by the government of India, is a reliable instrument with consistent, long-term returns.
PPF is a low-risk, government backed savings scheme with generally higher interest rate and tax-exempt interest payout, making it an effective instrument to build wealth over a longer period of time. It is an EEE benefit tool — exempt investment, exempt maturity amount, exempt interest earned.
At a fixed interest rate of 7.1% this quarter, it is among the safest investment options for retirement and tax planning in India.
How and where can you open a PPF account?
A PPF account is offered by any post office or public bank and some private banks in India, for a minimum deposit of ₹100-500 each month.
It has requirement of KYC, where you will need to submit the duly filled form with your Aadhaar Card copy, proof of residence, and a passport size photo.
You can also directly open a PPF account through your bank through online banking or mobile banking, along with the required KYC documents.
What are the key features of PPF?
| Factors | Public Provident Fund (PPF) |
|---|---|
| Tenure | 20 years, including 5 years extension |
| Lock-in period | 15 years |
| Risk | Risk-free, guaranteed return as per fixed interest rate |
| Tax saving | Under Section 80C, up to ₹1.5 lakh |
| Opening deposit | ₹100-500 |
| Access | All public banks and post offices, some private banks |
| Loan collateral | Accepted, after 1 year (up to 25% of balance) |
| Interest rate | 7.1% fixed (reviewed each quarter) |
| Who can operate | Individuals and joint accounts including minors |
| Withdrawals | Partial withdrawal after 5 years for specified reasons, full after 15 years |
| Sources: SBI, India Post, Clear Tax | |
What are the PPF rules of withdrawal?
There are three basic kinds of PPF withdrawal rules: Partial withdrawal, premature closure, and withdrawal after maturity. These are explained as below:
- Can partially withdraw up to 50% of balance with no penalty after five years of the account being active — Partial Withdrawal.
- Can withdraw full amount with 1% reduction in interest rate after five years of account being active — Premature closure. Notably, this is only allowed in certain cases such as due to change in residency status, for higher education fees or for medical emergencies.
- Can withdraw 100% upon maturity (15 years) of account with no penalty and tax-free — Withdrawal after maturity.
- Can withdraw up to 60% of funds over five years, with one withdrawal each year, after extending PPF tenure for five years (20-year tenure total).
Step-by-step guide to withdraw PPF funds before lock-in period ends
- Download ‘Form C’ which is the PPF withdrawal form from your bank’s website or collect a physical copy from your nearest bank branch.
- Fill in the required details on the PPF form. This will include the amount of fund your want to access and the total number of years the PPF account has been active.
- You will need to provide a copy of your PPF passbook with the duly filled Form.
- Submit these documents to the respective bank branch.
- Once your application has been approved, the amount will be transferred to your bank account.
(All rates are as mentioned on the respective bank’s official website, at time of writing on 14 March 2026)
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
