Glossary term

PPF

Government-backed long-term savings scheme — 15-year lock-in, currently 7.1% tax-free, 80C eligible.

Public Provident Fund (PPF) is a long-term savings scheme run by the Indian government via Post Offices and major banks. Current interest is 7.1% per annum, compounded annually. Minimum contribution: ₹500/year; maximum: ₹1.5 lakh/year.

PPF is fully EEE (Exempt-Exempt-Exempt): contributions get 80C deduction, interest is tax-free, maturity amount is tax-free. The 15-year lock-in is long but the account can be extended in 5-year blocks indefinitely.