PPF, or Public Provident Fund, is a long-term government savings scheme with a 15-year lock-in, designed to encourage disciplined retirement-style savings. You can deposit anywhere from ₹500 to ₹1.5 lakh per financial year, and the government declares an interest rate every quarter, which is credited to your account and compounds annually.
PPF is especially attractive because of its triple tax-free status — your contribution qualifies for a Section 80C deduction, the interest earned is completely tax-free, and the final maturity amount is also tax-free, a combination not offered by most other investments. After the initial 15 years, you can extend your account in blocks of 5 years, with or without making further contributions. Because it's backed by the government, PPF is considered virtually risk-free, making it a cornerstone of many Indians' long-term, low-risk savings.