PPF in India: Returns, Tax Benefits, and How It Compares to EPF
When you think about safe, tax-free savings in India, PPF, a government-backed long-term savings scheme with fixed returns and full tax exemption. Also known as Public Provident Fund, it's one of the most trusted tools for building retirement wealth without risk. Unlike mutual funds or stocks, PPF doesn’t swing with the market. Every rupee you put in grows at a rate set by the government—currently around 7.1%—and that growth is completely tax-free. You don’t pay tax when you invest, when it earns interest, or when you withdraw after 15 years. That’s the triple advantage: EEE—Exempt, Exempt, Exempt.
PPF is often compared to EPF, the employer-mandated retirement fund where both you and your company contribute. Also known as Employees' Provident Fund, it’s automatic if you’re salaried, but PPF is something you choose for yourself. EPF gives you better liquidity—you can withdraw if you change jobs or retire early—but PPF gives you more control and higher tax benefits. With PPF, you can start with as little as ₹500 a year and invest up to ₹1.5 lakh annually to fully use your Section 80C deduction. EPF contributions also count toward that ₹1.5 lakh limit, so if you’re already maxing out your EPF, adding PPF means you’re double-dipping into tax savings. But here’s the catch: PPF money is locked in for 15 years. You can take a loan after year 3, or make partial withdrawals after year 7, but you can’t just pull it out whenever you want.
People use PPF not just for retirement, but as a stable anchor in their financial plan. It’s the go-to for parents saving for their child’s education, for freelancers without employer benefits, or for anyone tired of watching their savings vanish in volatile markets. The government backs it, the returns are predictable, and the rules are simple. If you’re serious about growing money without stress, PPF is one of the few options that actually delivers on its promises.
Below, you’ll find clear comparisons between PPF and EPF, real numbers on how much you can earn over time, and exactly when you can touch your money without penalties. Whether you’re new to investing or just trying to optimize your tax savings, these guides cut through the noise and show you what actually matters.
Section 80C and Children’s Plans in India: SSY vs Child ULIPs vs PPF
Compare SSY, PPF, and Child ULIPs under Section 80C to find the best tax-saving investment for your child's future in India. Learn which option offers higher returns, lower risk, and true financial security.
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