Question 1

What is the current PPF rate?

Accepted Answer

PPF interest rate for Q1 FY 2025-26 is 7.1% per annum, compounded annually. The rate is revised quarterly by the government but has remained at 7.1% since 2020.

Question 2

PPF lock-in is 15 years — can I withdraw early?

Accepted Answer

Partial withdrawal allowed from the 7th year (up to 50% of balance at end of 4th year). Premature closure allowed after 5 years only for medical emergency or higher education. Loan against PPF available from 3rd to 6th year.

Question 3

PPF vs FD — which is better?

Accepted Answer

PPF wins on tax efficiency — returns are 100% tax-free (EEE status). A 7.1% PPF equals 10%+ FD for someone in the 30% tax bracket. FD interest is fully taxable.

Question 4

Maximum PPF deposit per year?

Accepted Answer

₹1.5 lakh per financial year. This also qualifies for Section 80C tax deduction. Minimum deposit is ₹500 per year to keep the account active.

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