The scheme is for 15 years which can be extended for 5 years. The rate of interest is on a floating basis which is announced on annual basis by the government. It is a recommended scheme for the accumulation of wealth for the family to meet the financial goals of life.

FEATURES

• It is a statuary scheme of the 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 the 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 a 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 the 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