PPF provides 8.6% return compounded annually.
Maximum limit to contribute in it is Rs 150,000 for each year.
It is a long term investment with complete withdrawal not possible till 15 years though partial withdrawal is possible after 5 years.
Withdrawal from PPF
You can make a partial withdrawal after five financial years from the end of the year in which the initial subscription was made, or from the seventh year. The amount of withdrawal is 50 per cent of your account balance.
No loan is provided against PPF as it is an account and not an instrument. Also, according to the law, no authority is allowed to freeze your PPF account, except to set off your income tax.
PPF rate of interest for previous 10 years are given below
| 01.04.1986 to 14.01.2000 | 12% |
| 15.01.2000 to 28.02.2001 | 11% |
| 01.03.2001 to 28.02.2002 | 9.50% |
| 01.03.2002 to 28.02.2003 | 9% |
| 01.03.2003 to 30.11.2011 | 8% |
| 01.12.2011 to 31.03.2012 | 8.60% |
| 01.04.2012 to 31.03.2013 | 8.80% |
| 01.04.2013 to 31.03.2014 | 8.70% |
| 01.04.2014 to 31.03.2015 | 8.70% |
| 01.04.2015 to 31.03.2016 | 8.70% |
| 01.04.2016 to 31.03.2017 | 8.10% |