India Post currently offers interest at the rate of 7.9 per cent on investment in the 15-Year Public Provident Fund (PPF) Account at designated post office branches. The interest rates applicable to small savings schemes such as Public Provident Fund (PPF) Account are currently reviewed by the Ministry of Finance on a quarterly basis. For the quarter ending March 31 - the fourth quarter of the current financial year, the finance ministry last month retained the interest rates at existing levels. The 15-Year Public Provident Fund (PPF) scheme is part of the nine government-run small savings schemes.
Here's all you need to know to set up a 15-Year Public Provident Fund (PPF) Account, which is one of the nine small savings schemes offered at designated post offices in the country:
For the fourth quarter of current financial year, investment in the Public Provident Fund (PPF) scheme fetches interest at the rate of 7.9 per cent.
Minimum Investment For Opening Account
For opening an account under the Public Provident Fund (PPF) Account, one needs to invest a minimum of Rs 500, according to the India Post website - indiapost.gov.in.
Maximum Investment Allowed
A maximum of Rs 1.5 lakh can be invested in the 15-Year PPF account a financial year. The deposits can be made in lump sum or in 12 instalments, according to the India Post website.
While the interest earned on account investment in the PPF account is tax-free, the deposits qualify for deduction from taxable income under Section 80C of the Income Tax Act.