The rate of interest on PPF is determined by the Central government on a quarterly basis.
State Bank of India, the largest lender in the country allows customers to invest in public provident fund (PPF) accounts. SBI allows customers to open PPF accounts under the Public Provident Fund (Amendment) Scheme, 2016. The scheme was introduced by the National Savings Organization in 1968 to mobilize small savings. It offers an investment avenue with decent returns coupled with income tax benefits, said SBI on its website sbi.co.in. The biggest benefit of opening a PPF is in terms of its income tax implications. PPF has a status of EEE, which means exempt, exempt, exempt. This means that your contribution towards PPF, the interest that you earn and the maturity proceeds from it are all tax-free. A contribution of up to Rs. 1.5 lakh towards PPF in a financial year is eligible for tax rebate. This deduction can be availed under Section 80C of the Income Tax Act.