What is the Public Provident Fund (PPF)?

The Public Provident Fund, commonly known as PPF, is a government-backed long-term savings and investment scheme in India. It was introduced to encourage small savings by offering safe returns and tax benefits. Any resident individual can open a PPF account at a post office, bank, or certain financial institutions with a minimum annual deposit requirement. The lock-in period of the scheme is 15 years, and it can be extended in blocks of 5 years. Interest earned on the deposit is compounded annually and is free from tax. Investments made in PPF also qualify for tax deductions under Section 80C. Since it is backed by the government, PPF is considered a highly secure option for individuals seeking safe growth of money along with long-term financial planning.