The public provident fund is established by the central government.
One can voluntarily open an account with any nationalized bank,selected
authorized private bank or post office.
The account can be opened in the
name of individuals including minor.
The minimum amount is which can be deposited.
The rate of interest at present is % per annum, which is also tax-free.
The entire balance can be withdrawn on maturity.
Interest received is tax free.
The maximum amount which can be deposited every year is Rs. 1,00,000 in an account.
The interest earned on the PPF subscription is compounded.
All the balance that accumulates over time is exempt from wealth tax.
Moreover, it has low risk – risk attached is Government risk.
PPF is available at post offices and banks.