PPF account stands for Public Provident Fund which is offered by the Government of India. Having a long tenure of 15 years, this is a popular risk-free saving scheme that comes with a lot of flexibility in terms of deposits.
Being a long-term saving scheme, an individual can open a PPF account through a post office of any public and private banks recognised by the Government of India. You can open the account with a minimum of Rs. 100. However, you need to deposit a minimum of Rs. 500 in a year and maximum of up to Rs. 1.5 Lakhs.
A PPF account is suitable for a long-term investment plan. By depositing a decent amount from your saving every month, you can accumulate a huge corpus after 15 years which can help you meet a certain financial goal of your life. The interest rate on PPF account is revised for every financial quarter which generally ranges between 7% to 8% which is higher among so many other saving schemes.
PPF account provides tax benefits up to Rs. 1.5 Lakhs under section 80C of the Income Tax Act. The interest earned on the PPF account is tax-free. You can also get a loan against your PPF account up to a certain percentage of the principal amount.