PPF Investment: How It Works and Why It’s Still a Top Choice in India

When you think of PPF investment, a long-term, tax-free savings scheme backed by the Indian government. Also known as Public Provident Fund, it’s one of the most trusted tools for building wealth without market risk. Unlike stocks or mutual funds, a PPF account doesn’t swing with the market. It gives you steady, guaranteed returns—currently at 7.1% per year—and your money grows completely tax-free. That’s the big draw: you invest, it grows, you withdraw—all without paying a rupee in tax.

What makes PPF special isn’t just the returns. It’s the rules. You can put in up to ₹1.5 lakh every year, and that entire amount reduces your taxable income under Section 80C. The lock-in is 15 years, but after that, you can extend it in blocks of five years and keep earning interest. You can even take a loan against it after year 3, or make partial withdrawals after year 7. This isn’t a rigid savings box—it’s a flexible tool that grows with your life. And because it’s backed by the government, your money is safer than in any bank FD or corporate bond.

People use PPF for big goals: buying a home, funding a child’s education, or securing retirement. It’s not for quick cash. If you need money next year, look elsewhere. But if you’re thinking 10, 15, 20 years ahead, few options match its mix of safety, tax breaks, and compounding power. It’s not flashy, but it’s reliable—like a steady paycheck you control.

Related tools like EPF, the employer-matched provident fund for salaried workers and NPS, the National Pension System with market-linked returns exist, but they don’t offer the same simplicity. EPF ties you to a job. NPS forces you into equity exposure. PPF? You open it, fund it, forget it—and let time do the work.

What you’ll find below are real questions from people just like you: Is PPF better than FD? Can I have two PPF accounts? What happens if I miss a deposit? How do I extend it after 15 years? We’ve pulled together the clearest answers from real users and experts—no fluff, no jargon, just what matters.