Answers to the questions people ask most often about a PPF (Public Provident Fund) account.
Who can open a PPF account?
Any individual, for themselves and for a minor they are guardian of. You can open only one PPF account in your own name.
Who can't open a PPF account?
Non-resident Indians (NRIs). However, a resident who becomes an NRI before their PPF account matures can keep depositing until maturity, but can't extend the account. They can also close it early, after five years, on the ground of the change in residency. The rules for accounts of people who became NRIs were tightened in October 2024, so check your account's status with your bank or post office.
Hindu Undivided Families (HUFs) also can't open an account, since May 13, 2005. HUF accounts opened before May 13, 2005 can keep receiving deposits until maturity, but can't be extended.
How much can I deposit in a PPF account?
Between 500/- and 1,50,000/- in a financial year, in multiples of 50/-. This covers your own account and any account you hold as guardian of a minor.
The Central Government sets the deposit ceiling from time to time. At present it is 1,50,000/- a financial year, and it applies to your own account and the accounts of minors you are guardian of, taken together.
How many deposits can I make in a financial year?
As many as you like. You can deposit the whole amount at once or in any number of instalments. The old limit of twelve deposits a year was removed in the 2019 rules.
When is an account treated as discontinued?
When you deposited 500/- or more in the first year but don't deposit the minimum amount in a later year.
You can't take a loan or make a partial withdrawal from a discontinued account until it is revived.
You also can't open a second PPF account at another office alongside the discontinued one.
How do I revive a discontinued account?
Go to the office where the account is held and pay 50/- for each year you missed, plus the arrears of 500/- for each of those years.
What is the PPF interest rate?
7.1% p.a. for the October to December 2026 quarter, the same as since April 2020. The Central Government reviews the rate every quarter and notifies it in the official gazette.
Can I nominate someone?
Yes. You can nominate one or more people to receive the balance in your account if you die. You can't make a nomination on a minor's account.
Can I change my nomination?
Yes. Submit the form for cancelling or changing a nomination (Form-10) at your bank or post office.
Can a PPF account be transferred?
Yes. You can move a PPF account from one account office to another.
When does a PPF account mature?
Fifteen years after the end of the financial year in which you made the first deposit. You can then withdraw the whole balance.
You can also close the account early, after five years from the end of the year it was opened, for treatment of a life-threatening illness in the family, for higher education, or on becoming a non-resident. You then get 1% less interest than was credited for every year the account has run.
Can I make a partial withdrawal from a PPF account?
Yes, once five years have passed from the end of the financial year in which you made the first deposit. You can withdraw up to fifty percent (50%) of the balance at the end of the fourth financial year before the year of withdrawal, or at the end of the previous financial year, whichever is lower, minus any loan outstanding. Only one withdrawal is allowed per financial year.
For example, an account opened in January 2010 can have a partial withdrawal from April 1, 2015. For a withdrawal in April 2015, the most you can take is 50% of the lower of the balances on March 31, 2012 and March 31, 2015.
Can I make a partial withdrawal from a minor's account?
Yes, but the guardian must give a certificate in this form:
"Certified that the amount sought to be withdrawn is required for the use of
______________ who is alive and is still a minor."
Can I keep depositing after the account matures?
Yes. After maturity you can choose to extend the account in blocks of 5 years and keep depositing, within the usual limits. You must choose this before the end of the first financial year after maturity.
During an extension, you can make one partial withdrawal each financial year, and the total can't be more than 60% of the balance at the start of the block.
When one block ends, you can extend for another, again within the deposit limits. You have to choose the extension in the first financial year of each new block.
Can I keep the account open after maturity without depositing?
Yes. You can keep your PPF account after maturity without depositing anything more. The balance keeps earning interest, and you can make one withdrawal of any amount each financial year.
When can I take a loan, and how much?
You can take a loan against your PPF deposits any time after one year from the end of the financial year of your first deposit, and before five years from the end of that same financial year.
For example, if you opened the account in January 2010, you can take a loan between April 2011 and March 2015. You can take only one loan a year, and not a new one until the last is fully repaid.
The loan is limited to 25% of your balance at the end of the second year before the financial year in which you ask for the loan. For example, if you ask for a loan in April 2011, you can get 25% of the amount (including interest) in the account on March 31, 2010.
How do I repay the loan?
Repay the principal within thirty-six months, counted from the first day of the month after the month the loan was sanctioned.
You can repay it in one lump sum or in two or more monthly instalments within those thirty-six months.
Once the principal is repaid, you pay the interest in no more than two monthly instalments. The interest is charged on the principal at 1% a year, for the period from the first day of the month after the loan was taken to the last day of the month in which you repay the last instalment.
If the loan isn't fully repaid within the thirty-six months, interest on the amount outstanding is charged at 6% a year instead.
Can a woman change her name on the account after marriage?
Yes. After marriage, a woman can ask for her surname to be changed by submitting documentary proof.
How is the money paid out after the subscriber dies?
If a nomination is in force, the nominee or nominees apply to the bank or post office in Form-11 (the claim form for a deceased depositor's account) with proof of the subscriber's death. The bank then pays them the full balance, after adjusting any interest due on loans the subscriber took.
If one of the nominees has also died, the surviving nominee or nominees must give proof of that death too, along with proof of the subscriber's death.
If no nomination is in force when the subscriber dies, the bank pays the balance, after adjusting any interest due on loans, to the legal heirs when they apply in Form-11.
If the balance is up to Rs.5 lakh and no succession certificate or probate is produced within six months, it can be paid to the legal heirs when they produce:
- A letter of indemnity
- An affidavit
- A letter of disclaimer on affidavit
- The subscriber's death certificate and the PPF passbook
Does the PPF account earn interest after the subscriber dies?
Yes. The balance keeps earning interest until the end of the month before the month in which the money is paid to the nominee or legal heirs.
Can a PPF account be transferred from one person to another?
No. A PPF account can't be transferred to another person, so a nominee can't continue a deceased subscriber's account in their own name.