How to open a PPF account: The Public Provident Fund (PPF) is a government-backed savings scheme that is widely favored by investors for building a corpus over an extended period. It provides tax advantages, assured returns, and is considered a secure investment choice.
The Public Provident Fund’s interest rate, determined quarterly by the Ministry of Finance, is subject to change every three months.Currently, the PPF interest rate is 7.1% for the quarter spanning from October to December 2024.
The interest calculation is based on the minimum balance in your PPF account between the fifth day’s close and the month’s end. At the conclusion of each financial year, the accrued interest is credited to your account.

How to open a PPF Account

Opening an account is a straightforward process. Any resident of India is eligible to open a PPF account. Additionally, parents or legal guardians can open an account on behalf of their minor children. However, NRIs are not permitted to open new PPF accounts.
To open a PPF account, the following documents are required:

There are two ways to open a PPF account: online or by visiting a bank or post office in person.
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1. Online

2. Offline
At a bank or post office, submit Form A and ID documents.
For minor children, a parent or guardian can open a PPF account on their behalf. The terms and deposit limits are identical to those of regular accounts, but the guardian is responsible for managing the account.
It is important to note that the PPF account has a 15-year term, which can be extended in five-year increments. The minimum annual deposit is Rs 500, while the maximum is Rs 1.5 lakh.
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How to get over Rs 1 crore from PPF?
Investing in PPF can yield significant returns over the long term. If you invest the maximum permissible amount of Rs 1.5 lakh in a single installment at the prevailing interest rate of 7.1%, you will receive a total corpus of Rs 40,68,209/- after 15 years. This sum comprises your investment of Rs 22,50,000/- over 15 years and the accumulated interest of Rs 18,18,209/-.
Upon completion of the initial 15-year period, you have the option to extend your PPF account in 5-year blocks. By opting for two such extensions, effectively investing in PPF for 25 years, your corpus at the end of the period will amount to Rs 1,03,08,014.97/-, surpassing the Rs 1 crore mark.
Should you decide to prolong your PPF account for an additional 5-year period, bringing the total investment duration to 30 years, the accumulated corpus would reach Rs 1,54,50,910.59/-, exceeding Rs 1.5 crore. This sum includes your cumulative investment of Rs 45 lakh and an impressive interest payout of Rs 1,09,50,911/-.
With inputs from Centre for Investment Education and Learning content which appeared in Economic Times