Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, designed to encourage small savings while offering attractive returns and tax benefits. It is one of the most secure investment options for individuals seeking stable, risk-free growth and long-term wealth creation.

The PPF account can be opened at any nationalized bank, selected private banks, or post offices. It offers a fixed interest rate, reviewed quarterly by the government. As of recent updates, the interest rate generally ranges between 7% to 8% per annum, compounded annually. The investment tenure is 15 years, which can be extended in blocks of five years upon maturity.

Investors can deposit a minimum of ?500 and a maximum of ?1.5 lakh per financial year. Contributions made to the PPF are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Moreover, the interest earned and the maturity amount are completely tax-exempt, making PPF an ideal choice for tax-efficient savings.

The account allows partial withdrawals from the seventh financial year and also provides loan facilities from the third financial year, offering a balance between liquidity and long-term savings. However, premature closure is permitted only under specific conditions such as medical emergencies or higher education needs.

Being a government-guaranteed scheme, the Public Provident Fund is considered extremely safe, making it suitable for conservative investors, salaried individuals, and self-employed professionals aiming for long-term financial security. While it may not deliver high short-term returns like equity investments, it plays a crucial role in building a stable retirement corpus and achieving financial discipline.