PPF investments qualify for a tax deduction under Section 80C of up to ₹1.5 lakh per financial year. The interest earned and the final maturity amount are also completely tax-free, making PPF an EEE (Exempt-Exempt-Exempt) instrument.

A PPF account has a mandatory lock-in period of 15 years from the date of opening. After maturity, you can withdraw the full amount, or extend the account in blocks of 5 years, with or without making further contributions.

The PPF interest rate is set by the government every quarter and has recently ranged between 7.1% and 8%. Interest is calculated monthly on the lowest balance between the 5th and last day of the month, but credited annually at the end of the financial year.

Partial withdrawals are allowed from the 7th financial year onward, subject to limits based on your account balance. Premature closure is also permitted after 5 years for specific reasons like medical treatment or higher education, subject to a small interest penalty.

You can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh into a PPF account in a single financial year, either as a lump sum or in up to 12 installments.