Question 1

What is PPF?

Accepted Answer

PPF (Public Provident Fund) is a long-term savings scheme backed by the Government of India. It offers a guaranteed interest rate (currently 7.1% p.a.) and has a lock-in period of 15 years. It's one of the safest investment options available to Indian residents.

Question 2

Can you withdraw PPF early?

Accepted Answer

PPF has a mandatory 15-year lock-in period. However, partial withdrawals are allowed from the 7th year onwards (up to 50% of the balance at the end of the 4th year). Premature closure is only permitted after 5 years in specific cases like life-threatening illness.

Question 3

Is PPF tax-free?

Accepted Answer

Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. Contributions up to ₹1.5 lakh per year are deductible under Section 80C. The interest earned is tax-free, and the maturity amount is completely exempt from tax — making PPF one of the most tax-efficient instruments in India.

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