Tenure: 15-YEARS

Rate of Interest: @7.10% p.a.

type  OF INTEREST :   Floating rate during the tenure

MODE OF CALCULATION: compounded annually but payable at maturity.


Rs. 500/- in a financial year

Maximum Amount Limit

Rs. 1,50,000/- lakh in a financial year

Who can Invest

An individual 

Post-Office Public Provident Fund

It is a one of most popular scheme which is not only attractive for tax saving but certainly for tax free income. There is a limit of Rs. 1,50,000/- per year and interest is on cumulative basis. The scheme is for 15 years which can be extended for 5 years. The rate of interest is on floating basis which announced on annual basis by the government. It is a recommended scheme for accumulation of wealth for the family to meet financial goals of life.


  • It is a statuary scheme of Central Govt of India

  • The scheme is for 15 years

  • One deposit of Rs 500/- is compulsory in each financial year Interest is compounded annually

  • Interest is floating and is accrued as per prevailing rate of a particular financial year

  • The deposit need not be made every month

  • Thus it suits the convenience of the investor

  • An account where the deposit is not made, is termed as discontinued account and it can’t be closed before maturity It can be reactivated by paying the minimum deposit ( Rs 500/-) and a penalty of Rs 50/-

  • Withdrawal is permissible every year from 7th financial year 50% of balance amount

  • Joint account is not permissible

  • Premature closure is not permissible unless it’s a case of death

  • Deposits in PPF qualify for rebate under section 80-c of Income Tax Act

  • The interest is totally tax free Nomination facility is available

  • Loan facility available from 3rd financial year

  • The best option for long term investments

Documents Required

  • 2 photographs

  • along with a self-attested copy of PAN Card and Aadhaar Card

Revised Rates

w.e.f. 30-06-2020