PPF: Open, Deposit, Extend, Close

Public Provident Fund (PPF) is the go-to, government-backed, tax-saving investment for Indian savers. This guide shows you exactly how to open an account (bank or post office), make deposits the smart way, get a loan/withdraw, extend after 15 years, and finally close—without tripping common rules.

🧭 Summary

• Outcome: Open a PPF, deposit ₹500–₹1.5 lakh per FY, earn interest, and use loan/withdrawal/extension features correctly.

• Timelines: Lock-in 15 financial years; partial withdrawal from year 7; loan facility years 3–6; extension in 5-year blocks. https://www.taxmann.com

• Costs: No account fee typically; interest 7.1% p.a. (Oct–Dec 2025); tax-free interest and maturity; deposits eligible under Section 80C (up to ₹1.5 lakh). The Economic Times+1

• Docs: PAN, Aadhaar (or other KYC), address proof, photo; minor’s birth certificate if opening for a child (guardian operates).

• Top pitfall: Depositing over ₹1.5 lakh in a FY—the excess earns no interest and gets no 80C benefit. State Bank of India

🧰 Before you start

Who this is for: Residents of India looking for safe, long-term savings + tax benefits. (NRIs can’t open; if you become NRI later, see FAQ).
Where to open: Any authorised bank branch/netbanking app, or your post office (India Post). India Post
What you’ll need:

• PAN, Aadhaar/other KYC, address proof, passport-size photo.

• Minor account: minor’s proof + guardian’s KYC.
  Key rules & limits:

• Deposit range: ₹500–₹1,50,000 per financial year (April–March). You can deposit any number of times (no “12 instalments” cap anymore), in ₹50 multiples. State Bank of India+1

• Interest credit: Calculated on lowest balance between the 5th and last day of each month; credited on 31 March. So deposit before the 5th to earn for that month. State Bank of India

• Current rate: 7.1% p.a. (Oct–Dec 2025); reviewed quarterly by the Ministry of Finance. Always re-check the latest circular. The Economic Times+1
  Tax: EEE—investment (80C), interest, and maturity tax-free under current law. (General info—verify for your situation.)

🔟 Steps (do this now)

1) Choose your provider (bank vs post office).
Pick the bank you already use (easy deposits via netbanking/UPI) or your local post office (good for offline users). Features and rate are identical. India Post

2) Fill the PPF account opening form.
Available at bank branches/netbanking or India Post. For a minor, open in the minor’s name with guardian.

3) Complete e-KYC/KYC.
Provide PAN, Aadhaar/other OVD (Officially Valid Document), address proof, and photo.

4) Make the first deposit.
Minimum ₹500. If you want interest from this month, ensure the money hits by the 5th. You can use cash/cheque/online. State Bank of India

5) Plan the year’s deposits.
You can deposit any number of times up to ₹1.5 lakh per FY. A monthly SIP before the 5th is a popular habit. State Bank of India

6) Track interest and passbook/e-statement.
Interest is annual but computed monthly. Check your passbook/e-passbook every quarter. State Bank of India

7) Use the loan facility (years 3–6) if needed.
Borrow up to 25% of the balance (as per rule) from the 2nd preceding year’s balance; repay within 36 months. Loan interest: PPF rate + 1%; becomes 6% if you don’t repay in 36 months. NSI India

8) Use partial withdrawal (from year 7).
Withdraw up to 50% of the lower of (a) balance at end of 4th year preceding the withdrawal year, or (b) balance at end of previous year. One withdrawal per FY. https://www.taxmann.com

9) At 15 years, choose your maturity option.

• Extend with deposits (Form—bank/post office): extend in 5-year blocks, keep contributing; within a block, total withdrawals ≤ 60% of balance at start of block.

• Extend without deposits: keep earning interest; no fresh contributions.
  Choose within 1 year of maturity. State Bank of India+1

10) Close & withdraw maturity amount.
After 15 years (or after any extended block), you may close and take the full balance tax-free. Premature closure (after 5 years) allowed for specific reasons (serious illness/education/change in residency etc.), but interest is reduced by 1% for the entire period. mint+1

Notes/Tips

• Avoid over-depositing: Anything over ₹1.5 lakh in a FY earns no interest and no 80C. Ask your bank to refund if mistakenly credited. State Bank of India

• Family planning: You can open one PPF per person; a parent can be guardian for a minor’s account, but the ₹1.5 lakh limit is combined across your own + minor accounts you fund (practical compliance—banks follow 80C cap).

• Transfers: You can transfer PPF between bank/post office. Ask for “transfer of PPF account” at the current office.

📋 Checklist (copy-paste)

• Pick provider: bank branch/app or India Post.

• Gather KYC: PAN, Aadhaar/OVD, address proof, photo; minor’s birth proof if needed.

• Open account and deposit before the 5th (to earn this month).

• Set up monthly auto-transfer (1st–4th of each month).

• Keep yearly total ≤ ₹1.5 lakh (including minor’s if you fund).

• If cash-flow crunch years 3–6, consider PPF loan; note interest. NSI India

• From year 7, plan partial withdrawals if required. https://www.taxmann.com

• In year 15, choose: extend with deposits / extend without / close. State Bank of India

• If shifting abroad, check premature closure rules (1% interest cut). mint

• Save passbook/e-statements for records and tax proof.

⚠️ Red flags & common mistakes

🗣️ Templates & scripts

Email to bank/post office to extend with deposits (after maturity):
Subject: Request to extend PPF account with deposits (5-year block)
“Dear Sir/Madam,
I request extension with deposits of my PPF A/c [number], matured on [dd-mm-yyyy], for a 5-year block under the PPF Scheme, 2019. I will continue annual deposits within the prescribed limit. Please confirm any additional form(s) required and update my account status.
Regards, [Name], [Mobile]”

Email to reverse excess deposit (>₹1.5 lakh):
Subject: Refund of excess PPF deposit for FY [YYYY-YY]
“Dear Sir/Madam,
I inadvertently deposited ₹[amount] over the ₹1.5 lakh limit in FY [YYYY-YY] in PPF A/c [number]. As per scheme rules, the excess does not earn interest/80C benefit. Kindly reverse/refund the excess to my linked account and confirm.
Regards, [Name]”

Phone script (branch helpline):
“Namaste. I’m calling about my PPF A/c [number]. I want to [extend with deposits / request loan / initiate partial withdrawal / refund excess deposit]. Please tell me the form name, documents, and TAT. My registered mobile is [number]; please log a ticket and share the reference.”

🧗 Escalation path (with links)

1. Provider: Bank branch/relationship manager or India Post post office—ask for the PPF cell or branch operations.

2. Bank grievance: Bank’s grievance portal/e-mail; then Bank Nodal Officer.

3. Regulator (bank): RBI’s Complaint Management System (Integrated Ombudsman Scheme)—for service lapses by banks.

4. India Post grievance: India Post Customer Care/PG Portal (CPGRAMS)—for post office PPF issues.

5. Policy/Rate reference: Ministry of Finance (DEA) Small Savings notifications (quarterly rates) and PPF Scheme, 2019 text. Business Standard+1

❓FAQs

1) What’s the current PPF interest rate?
7.1% p.a. for Oct–Dec 2025; MoF reviews quarterly. Check the latest circular before investing. The Economic Times+1

2) Can I deposit more than 12 times a year?
Yes. No cap on number of deposits now (only total ≤ ₹1.5 lakh per FY; multiples of ₹50). State Bank of India+1

3) When does the interest start on a deposit?
Interest is computed on the lowest balance between the 5th and last day of each month. Deposit by the 5th. State Bank of India

4) Can I take a loan on PPF?
Yes, years 3–6; repay in ≤36 months. Loan interest is PPF rate + 1%; turns 6% if not repaid within 36 months. NSI India

5) When can I make a partial withdrawal? How much?
From year 7, up to 50% of the allowed balance (rule-based formula). One withdrawal per FY. https://www.taxmann.com

6) How do I extend after 15 years?
Submit an extension request within 1 year of maturity to extend in 5-year blocks—with or without deposits. With deposits, your total withdrawals during the 5-year block are capped at 60% of the starting balance. State Bank of India+1

7) I became an NRI after opening PPF. What now?
You cannot open as NRI; if residency changes after opening, premature closure is allowed after 5 years (with 1% interest reduction). Check with your provider on documents to update residency status. mint

8) What happens if I deposit over ₹1.5 lakh?
The excess earns no interest and doesn’t qualify for 80C; ask your provider to refund it. State Bank of India

9) Can I hold multiple PPF accounts?
Only one PPF per person is permitted. Minor can have one (guardian operates). If a duplicate exists by mistake, the additional account is closed and money transferred—speak to your provider.

10) Is PPF interest/maturity taxable?
Currently tax-free (EEE). Always verify for your situation; rules can change.

📚 Sources

• Public Provident Fund Scheme, 2019 (Ministry of Finance, DEA) — official rules on deposits, loans, withdrawals, extension, premature closure. NSI India

• India Post — Savings Schemes (PPF page) — channel, features, displayed rate. India Post

• SBI — PPF (personal banking/FAQ) — operational details: interest calculation window; deposit limits; extension window. State Bank of India+2State Bank of India+2

• Small Savings Rates (Oct–Dec 2025) — coverage confirming PPF 7.1% this quarter. The Economic Times+1

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Finance disclaimer: This is general information, not personalised financial advice. For tax or investment decisions, consult a qualified professional and check the latest official circulars.