PPF
PPF or Public Provident Fund is a great way to invest your money and grow it over the years, as the scheme requires you to keep the money for a lock-period of 15 years. You can be sure about the safety of your money since it is a government-backed plan in India. Apart from being a popular investment tool, a PPF account also offers many benefits, along with a decent rate of interest in 2025.
Read this blog below to learn everything important about PPF, like steps to open a PPF account, the eligible documents needed and the current PPF interest rates.
The Important Features of PPF
Some of the major features of a PPF account are:
- Assured Returns
PPF stands out from investment options, like funds or stocks because it offers assured returns, backed by the government. This feature makes it a secure choice for investors prioritising safety over returns that come with market volatility.
- Loan Advantage
You can avail a loan against your PPF balance between the 3rd and 6th financial year from the date of account opening. This facility can be helpful during financial emergencies.
- Partial Withdrawals
After completing five full financial years of your PPF account, you get the flexibility to make partial withdrawals. This aspect enhances the scheme’s appeal by providing the option to access funds without closing the account.
- Extension Opportunity
Beyond the 15 years, you have the flexibility to extend your PPF account in blocks of five years. This extension option is beneficial for investors looking to continue growing their investments without needing withdrawals.
PPF Account Interest Rate 2025
As of May 2025, the current PPF interest rate is 7.1% per annum. With this attractive rate of interest, it is important to know that this rate is set by the government and is usually reviewed every quarter as per the current market conditions and government policies.
The 7.1% interest is compounded annually and credited at the end of each financial year. Since the PPF has a 15-year lock-in period, the consistent interest rate supports wealth accumulation over the long term. Additionally, PPF enjoys tax benefits under Section 80C of the Income Tax Act, and the interest earned is tax-free.
Eligibility Criteria for Opening a PPF Account
Check your eligibility if you are thinking of opening a PPF account:
- Any Indian national is eligible to open a PPF account and minors can also have an account, under the supervision of their parents or legal guardians.
- To open and manage a PPF account you must reside in India and NRIs are not eligible to open one. Even HUFs are not eligible to open new accounts.
- Remember that you are only permitted to hold a PPF account under your name, as joint accounts are not permissible.
- You have the option to start a PPF account at banks and post offices that are authorised by the government for this purpose.
Documentation Required For PPF Account
To get your PPF account opened, you will need the given documents:
- Proof of Identity: Copies of KYC documents like your Aadhaar card, passport, or driving license.
- Proof of Address: Documents such as utility bills, bank statements, or a rental agreement which have an address on them.
- Photographs: Latest passport-sized photos.
- Application Form: A completed PPF application form.
Guide to Opening a PPF Account
If you are interested in the benefits and wish to proceed with opening a PPF account with leading banks like ICICI Bank, follow these steps for a hassle-free online process.
- Log in to Your Net Banking Account
Start the process by logging into your ICICI Bank account through net banking. Enter your user ID and password. If you haven’t signed up for banking yet, make sure to complete that step.
- Search For The PPF Section
After logging in, go to the “Investment Tab” on the menu. Click on “PPF Accounts.” Make sure you have your Aadhaar card details handy before you begin.
- Fill in the Needed Details
Next, when filling out the PPF account opening form, remember to provide information such as your initial deposit amount, nominee addition and standing instruction. In the next section, your personal details are auto-populated.
- E-Signature Process
After filling in all the required details, you will be asked to sign the form. The e-signature process involves using the number linked to your Aadhaar card. You will receive an OTP on your phone for verification. Enter the OTP provided to sign the form, eliminating the need for any paperwork.
You will also need to add some funds to activate your PPF account. A minimum deposit of ₹500 is required and the maximum annual deposit limit is ₹1.5 lakh. This initial deposit will be automatically deducted from your ICICI Bank Savings Account once your PPF account is created.
Conclusion
Opening a PPF account is a simple and reliable way to build long-term savings. With attractive interest rates and tax benefits, it remains a popular choice for individuals looking for a secure investment option. Whether you are starting early or planning for the future, the PPF offers stability and peace of mind. By following the basic steps and keeping your documents ready, you can begin your savings journey with ease and confidence.
