The Public Provident Fund, or PPF, is a popular long-term savings scheme run by the Central Government of India. It was started because the government wanted to give the millions of self-employed people and unorganised sector workers a way to save for retirement.
PPF is still one of the most popular investments in India, and it's easy to see why. It pays 7.1% a year (October to December 2026 quarter). Deposits get a tax deduction of up to 150000 under Section 80C if you use the old tax regime, the maturity amount (including the interest earned) is tax-free, and it is completely safe. The balance can't even be attached to recover a debt or liability.
PPF suits you if you want a safe corpus, a decent return and the tax benefits (a deduction on what you deposit, tax-free interest and a tax-free maturity value), and you can leave the money alone for a long time.
You need discipline to get the most out of PPF. Your money is locked in for 15 years, so keep other savings for emergencies and short-term needs.
You can also take a loan against your PPF account, which can help with big expenses like a family wedding or your children's higher studies. And because the money is safe, you won't lose sleep over it.