Post Office PPF Account

5paisa Research Team Date: 28 Dec, 2023 04:46 PM IST


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The segment of post is also referred to as the ‘post office' in regular terminology. It is one of the earliest and most significant organizations at present. In today's time, it vaunts the most substantial connection of the postal dissemination system around the world. 

Along with mail delivery, post offices leverage essential to extensive financial facilities. They may include plans such as the PPF. PPF stands for Public Provident Fund. With the help of PPF post offices, a person can store the additional finances to attain secure returns and help create long-term wealth with consistent savings. 

What is a Post Office PPF Fund?

The central government administration offers some schemes and plans regarding PPF. The idea is to encourage people to save with the help of institutional facilities—the funding system functions according to the Public Provident Fund guidelines, 2019. People can easily contribute on a daily basis to the Post Office PPF Account scheme. Nevertheless, first, one must understand the essentials of a PPF plan to make sensible investment decisions. 

PPF Interest Rates 2023-24

The PPF scheme is a scheme supported and assisted by the Indian Government. The interest percentages of the Post Office PPF Account are evenly maintained around every banking institution and post office that provides the facility. The recently applicable interest rate of the post office PPF sums up to 7.1% in terms of the Q3 Financial Year 2023-24 (October-December 23)

Features Of Post Office PPF Account  

Like any other government scheme, the Post Office PPF Account has various features. Here is a demonstration of the crucial features of PPF.

Maturity Period  

The Post Office PPF Account comes with a minimum of fifteen years of tenure. One will be able to extend the same in a limitation of five years according to their preference.


The PPF permits a minimal INR 500 investment and the highest investment of INR 1.5 lakh for every financial year. One can make the investments at once in the form of a substantial amount. Other than that, they can also invest in twelve small installments. 

Loan Facility 

The Post Office PPF Account holders can get loans against the public provident fund from the PO between the third and the sixth financial year of account opening. They will be able to attain an equal amount of loan up to at least 25% of the remaining balance. They can get this loan around the end of the second year or the year before the application. 

Premature withdrawal 

Applicants will be able to withdraw from their Post Office PPF account from the seventh year onwards. 

Premature Closure 

A Post Office PPF Account holder will be able to set down an account after a period of 6 years starting from the opening date. They can close the particular account under these scenarios:
• To gain financial benefits for pursuing their studies of the dependent young minds or self
• A severe and life-threatening disease of spouse, dependent young ones or self
• Changed residence

Tax Benefit 

The Post Office PPF account creation comes with tax benefits. All the contributions will be released till the margin of INR 1.5 lakh every year under the 80C section. The withdrawals and the returns one has earned are also entirely taxation-free.  


Individuals can nominate one or more persons when opening an account with the Post Office or during their tenure.

How is Post Office PPF Interest Calculated?

The PPF Interest rate is evaluated on a monthly basis. It is calculated based on these two balances that are:
• The last day of a specific month
• The fifth day of the month
The entire interest one has earned in one year is supplemented to the closing balance of the account. This forms the opening balance for the following year. In this manner, the interests are compounded each year to deliver more returns to Post Office PPF Account holders.

Eligibility for Opening a PPF Account in the Post Office

The option for opening a PPF account applies to anyone who is an Indian citizen and a parent of a mentally disabled individual or a minor. One can open the Post Office PPF Account with only INR 100 every month. The yearly investments that rise beyond INR 1.5 Lakh shall not be eligible for interest earning. They shall also not be suitable for tax savings. 

Documents Required for Post Office PPF Account

The documents that you will need for filling out and delivering the application for the Post Office PPF Account include the following:
• Form E (if you are declaring a particular nominee) PAN identification
• Form B (pay- slip)
• Two passport-sized photographs
• Address proof
• Proof of identification
Applicants will need to have both photocopies and original documents when they are requesting for the particular scheme. 

How Do You Deposit Money In Your Post Office PPF Account Online?

You need to make deposits in a PPF account, which needs to be completed at least once each year. The deposit must be continued for fifteen years.  
Demonstrated below is a step-by-step process of sending cash to your Post Office PPF Account via IPPB. 
• Add cash from your personal bank account to the Post Office PPF Account.
• Visit the DOP Products
• Click on the PPF option  
• If you aim to transfer cash into the PPF account, select PPF
• Write down the public provident fund account details along with the consumer ID of the DOP. 
• Then, simply essential in the SSA account detail and the customer identification of the DOP
• Then select the amount of installment. 
• IPPB will notify you of a successful payment transfer made through the IPPB mobile application.
• If you performed the steps successfully, the IPPB phone application will send you a notification letting you know that the request was successfully submitted.

PPF Loan and Partial Withdrawal in Post Office

Some of the essential regulations of attaining a loan against the PPF Post office include:

When Can You Take The Loan?

Even if the Post Office PPF Account matures within fifteen years, you can attain the loan against the specific account from the third year onwards commencing to the sixth year. The sixth year is then considered from the account opening date. A single loan can be attained within a financial year. The second loan shall be offered once the initial loan is fully paid off.

How Much Interest Applies To The PPF Loan?  

The interest will be applicable on the Post Office PPF Account loan based on two criteria:
The interest shall be applicable at around 1% per year if the loan has been recompensed within thirty-six months of receiving the loan. 
Another criterion includes the application of the 6% interest every year, in case the loan has been recompensed after thirty-six months of attaining the loan. 

How Much Of A Loan Can You Take From Your PPF Balance?  

The maximal loan amount for the Post Office PPF Account is limited to 25% of the total account balance at the end of the second year. This year is instantly preceded by the public provident fund loan you applied for. 

Partial Withdrawal From The Post Office PPF Account 

One can make fractional withdrawals from the seventh year onwards from the date of account opening each year until the Post Office PPF Account has matured. The highest permitted fractional withdrawal equalizes 50% of the PPF account balance from the end of the fourth year to the preceding year of withdrawal instantly. 

PPF Historical Interest Rates

Time Duration Rate of Interest (Per Year)
Q2 FY 2023-24 7.1%
Q1 FY 2023-24 7.1%
Q4 FY 2022-23 7.1%
Q3 FY 2022-23 7.1%
Q2 FY 2022-23 7.1%
Q1 FY 2022-23 7.1%
Q4 FY 2021-22 7.1%
Q3 FY 2021-22 7.1%
Q2 FY 2021-22 7.1%
Q1 FY 2021-22 7.1%
Q4 FY 2020-21 7.1%
Q3 FY 2020-21 7.1%
Q2 FY 2020-21 7.1%
Q1 FY 2020-21 7.1%
Q4 FY 2019-20 7.9%
Q3 FY 2019-20 7.9%
Q2 FY 2019-20 7.9%
Q1 FY 2019-20 8.0%
Q4 FY 2018-19 8.0%
Q3 FY 2018-19 8.0%
Q2 FY 2018-19 7.6%
Q1 FY 2018-19 7.6%
Q4 FY 2017-18 7.6%
Q3 FY 2017-18 7.8%
Q2 FY 2017-18 7.8%
Q1 FY 2017-18 7.8%

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Frequently Asked Questions

Yes, initiating a Post Office PPF Account at the post office is just as safe as opening the account within a sanctioned bank. One can also track the balance and complete deposits online effortlessly by utilizing the IPPB application.

Both options are equivalently advantageous. Regardless of whether you have a Post Office PPF Account at a post office or a bank, the plan's features shall remain the same. Therefore, both procedures of account opening are convenient and safe. 

The PPF account subscribers can easily send their PPF account to any established banking institution via a post office and vice-versa. In such a case, this account shall be counted as a continuous account.

The Post Office PPF Account permits a Minimal investment of INR 500 and the highest investment of INR 5 lakh Every Financial Year. 

There is no promising amount of maturity available in this plan. Nevertheless, the governmental authority supports the plan and ensures the principal amount's security. It also provides one of the maximum interest rates in today's market. 

You will need an option for opening a Post Office PPF Account at your nearest PO. However, you can extend your PPF account digitally via your bank's official website. 

When an account is closed early, precisely 1% of your interest will be subtracted from the account extension or opening, as applicable.

The plan is available with a static tenure of fifteen years. Hence, you cannot take the Post Office PPF Account for a term that is less than fifteen years. However, you can perform a partial or fractional withdrawal to meet your economic needs.