📖 Public Provident Fund (PPF) — India's Best Tax-Free Investment

The Public Provident Fund (PPF) is one of India's most trusted and tax-efficient long-term savings schemes. Backed by the Government of India, it offers guaranteed returns with complete capital protection. The current interest rate is reviewed quarterly by the government.

PPF comes with the coveted EEE (Exempt-Exempt-Exempt) tax status. This means: deposits qualify for deduction under Section 80C (up to ₹1.5 lakh), interest earned during the tenure is tax-free, and the entire maturity amount is completely tax-free in your hands. Very few investments in India offer this triple tax benefit.

The lock-in period is 15 years, which can be extended indefinitely in blocks of 5 years. You must deposit a minimum of ₹500 every year to keep the account active. The maximum you can deposit is ₹1.5 lakh per year. Deposits can be made in lump sum or in installments (monthly/quarterly), but the total must not exceed ₹1.5 lakh.

For maximum interest benefit, deposit your PPF amount before the 5th of the month. Interest is calculated on the lowest balance between the 5th and the last day of each month. So if you're making a lump sum deposit, do it before April 5th to earn interest on the full amount for the entire year.