PPF Tips: Know 5 such facts about PPF which most people do not know...

If you want to save money in the right place and build a strong corpus, choose PPF. The Public Provident Fund (PPF) is a government-backed savings scheme that offers secure returns and tax exemptions. With an interest rate of around 7.1% (2025) and a tax-free maturity, millions of people invest in it. However, there are some things that can make your PPF investment even more profitable. So, let's learn 5 facts about PPF that many people don't know.

What is PPF?

PPF, or Public Provident Fund, is a government-owned savings scheme that offers investors secure and tax-free returns over the long term. It can be opened at both Indian post offices and banks.

-Investment period: 15 years (long-term investment).
-Interest rate: Government-determined, compounded annually.
-Tax benefits: Investments are tax-exempt under Section 80C.

-Minimum investment: ₹500 per year.
-Security: Fully government-backed scheme.

So, let's learn 5 facts about PPF that most people don't know.
Fact 1: Fathers can open accounts, but only mothers can monitor them.

Fathers can open PPF accounts, but only mothers can monitor and manage them. Yes, if the mother's name is not included as a custodian, the account is at risk of being closed. Divorce or the mother's absence can also cause problems. Therefore, it's important to always add the mother's name when opening an account to ensure the child's investment remains safe and manageable.

Fact 2: You can open a new account upon maturity.
Fact 2: After the maturity of a PPF account at 15 years, you can withdraw the entire amount or transfer the money by opening a new account. Essentially, the interest from the old account is transferred to the new account, and a new 15-year lock-in period begins. This method helps investors continue to benefit from PPF and ensure secure returns over a long period.

Fact 3: Continue interest by extending after maturity
PPF accounts can be extended for 5 years after maturity. If you do not withdraw funds during this period, interest will continue to accrue. Yes, you can renew the account every 5 years, which ensures better returns in the long term.

Fact 4: Partial withdrawals from the 7th year
Partial withdrawals are possible from the PPF account after the 7th year, allowing you to withdraw 50% of the balance. This limit increases to 60% after maturity. Also, note that interest stops upon withdrawal, so use it only for emergencies.

Fact 5: Nominations can be changed
Nominations in a PPF account can be made at the time of account opening and can be changed later. Fill out Form 2. It's important to update nominations immediately if there's a change in the family, so that future benefits go to the right person.

Clearly, these five PPF facts—mother custodian, new account, extension, withdrawal, and nomination—make investing smart. So, secure your future with proper planning.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.