Top 5 Benefits of Investing in a PPF Account

Public Provident Fund (PPF) investment is one of the most preferred investment options among Indian investors. PPF is backed by the central government and also provides a stable return. You can start putting some money in a PPF account to build a corpus that can be used for future goals. 

Top 5 Benefits of Investing in a PPF Account

However, if you are confused about whether you must invest in a public provident fund or not, read this article. I have compiled a list of benefits that will help you get a clear insight into the same. 

Top 5 Benefits of Investing in Public Provident Fund (PPF)

#1. Guaranteed Returns

One of the major benefits of investing in PPF is that the Government of India backs it. Not only the principal amount but also the fixed rate of interest, which makes it a completely risk-free investment. Moreover, the available balance in the PPF account can not be attached by any court order to pay off your debtors. 

#2. Small Investment 

This central government-backed investment option offers a lot of flexibility. The investor can open their account for as low as Rs 100. However, every year you will be required to deposit at least Rs 5,00 and a maximum of Rs 1,50,000. Furthermore, you have up to 12 installments to deposit the ideal amount, which comes under the deposit limit. The PPF account currently offers 7.1% interest, compounded annually. 

#3. EEE Tax Status

Public Provident Fund (PPF) comes with EEE (exempt-exempt-exempt) status. It is the only investment option in India that comes with this benefit. Under section 80C of the Income Tax Act, 1961, up to Rs 1,50,000 deduction is allowed. The interest you earn under this scheme is also non-taxable, along with the maturity amount after 15 years. 

#4. Flexible Investment Tenure

Another benefit of PPF investment is that your PPF account matures after 15 years. On maturity, you have two options: withdraw the fund or extend the tenure in the block of five years. If you are in your 20s and willing to buy a home or have some future goals, starting your investment today is adequate to maximize the maturity amount. 

#5. Partial Withdrawal Facility

As we have already discussed, PPF has a lock-in period of 15 years. Still, you have various options to use your deposited fund. In your third and sixth years, you can get a loan of up to 25% of the account balance. However, you will have to repay the loan money in 36 months, with the charged interest rate. In addition, the Public Provident Fund also allows a partial withdrawal facility from the seventh year of investment. 


Undoubtedly, PPF is one of the best investment options for individuals willing to get a tax deduction and guaranteed returns in the long run. If you are also one of such people, you can surely try PPF investment. I hope now, you have a clear understanding on the benefits of PPF investment. 

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