Post Office PPF Account: Interest Rate, How to Open, Eligibility & Withdrawal

Public Provident Fund (PPF) is a savings scheme well known for its guaranteed returns and tax benefits. To make PPF accessible for everyone including those from remote areas, the government allows users to open a PPF account at India Post Offices. A Post Office PPF Account is the same as one opened with public or private banks in terms of key features, interest rates and other regulations. The procedure of opening a PPF account at a post office is also similar and requires the same set of documents. Here is all you need to know about PPF account opening at post offices.

PPF Interest Rates 2025-26

Being a Government of India-backed scheme, the interest rate of PPF account is maintained uniformly across all post offices and banks that offer the facility. The current applicable post office PPF interest rate is 7.1% for Q2 FY 2025-26 (July-September, 2025).

Click here to check the historical interest rates of PPF.

Eligibility Criteria for Opening a PPF Account in Post Office

The following are some key eligibility criteria for opening a post office PPF account:

• Any resident Indian including salaried, self-employed, pensioner, etc. can open a PPF account at a post office

• The total number of PPF accounts including post office PPF account that an individual can open is restricted to one and joint operation is not allowed
• Minor PPF account can be opened at a post office by a parent/guardian on behalf of a minor child. This too is restricted to one minor PPF account per child
• Non-residents are not allowed to open a new PPF account. However, in case a resident Indian becomes NRI prior to maturity of the PPF account, he/she can continue operating the account till maturity

Related Read: Post Office Investment: Saving Schemes & Interest Rates

Documents Required for Post Office PPF Account

To open a Public Provident Fund Account at the Post Office, you need the following documents-

1. Identity proof- Voter ID, Passport, Driving License,
2. Identity proof- Voter ID, Passport, Driving License, Aadhaar Card
3. Address Proof- Voter ID, Passport, Driving License, Aadhaar Card
4. PAN Card
5. Passport size photograph
6. Nomination Form- Form E

Post Office PPF Account Opening Procedure

The process of Post Office PPF account opening is currently paper-based and requires physical presence at a nearby post office. The following are the key steps on how to open PPF account in Post Office:

• You need to get the application form from the nearby India Post Office/online and fill it out
• The completely filled out form can be submitted at a nearby India Post Office along with self-attested copies of required KYC documents (Aadhaar/PAN/Voter ID, etc.), photographs, etc. Ensure that you carry the original KYC documents with you for verification purposes
• You will also need to deposit an initial amount using draft/cheque (min. Rs. 100) for account opening. However, the minimum annual contribution required for the scheme is Rs. 500
• Once your post office PPF account is up and running, a passbook for the account is printed and provided to you. It contains key account details including PPF account number, balance, etc.

How to Deposit Money in your Post Office PPF Account Online

Post Office PPF account holders can deposit money online through India Post Payment Bank (IPPB) app. Follow the steps to deposit money in your post office PPF account-

Step 1: Install and set-up the IPPB app from your mobile’s respective app store

Step 2: Add money from your bank account to your IPPB account

Step 3: Navigate to the Department of Post (DOP) services section

Step 4: Choose the type of account you want to access. In this case, the Public Provident Fund account

Step 5: Enter your PPF account number and DOP customer ID

Step 6: Enter the amount that you want to deposit and select the ‘Pay’ option

Step 7: Verify all the details and proceed

You will be notified after a successful payment transfer via the IPPB app.

PPF Loan and Partial Withdrawal in Post Office

The following are some key rules of loan against post office PPF:

When can you take the loan?

Though the post office PPF account matures in 15 years, you can avail a loan against the account from the 3^rd year onwards to the 6^th year counted from the date of account opening. Only one loan can be taken in a financial year. Second loan will not be provided unless the first loan is paid in full.

How much interest is applicable on PPF Loan?

• Interest will be applicable at 1% p.a. if the loan is repaid within 36 months of taking the loan
• Interest will be applicable at 6% p.a. if the loan is repaid after 36 months of taking the loan

How much loan can you take from your PPF balance?

The maximum PPF loan amount is capped at 25% of the PPF account balance at the end of the 2nd Year that immediately precedes the year during which the PPF loan has been applied for.

Partial Withdrawal from Post Office PPF Account

From the 7th year onwards (from the account opening date), you can make partial withdrawals every year till the maturity of the post office PPF account. The maximum partial withdrawal permissible equals 50% of the PPF account balance at the end of the 4th preceding year or the year immediately preceding the year of withdrawal.

Read more about: PPF Withdrawal Rules

Key Features of Post Office PPF Account

The following are some key features of a PPF account opened at a post office:

• The maximum deposit allowed in a PPF account during a financial year is Rs. 1.5 lakh
• The number of deposits allowed into a post office PPF is capped at 12 annually
• PPF is an EEE (EEE) investment i.e. the principal amount invested, the interest earned and the maturity amount are all tax-free
• Minimum annual investment required to keep the account active is Rs. 500
• Interest on post office PPF account is compounded annually and paid out on 31st March every year

Also Read: Post Office PPF Calculator

Benefits of Opening a Post Office Public Provident Fund (PPF) Account

Here is a list of benefits of opening a post office public provident fund (PPF) account:

• The interest rate associated with Post Office PPF account is comparatively higher than several other saving schemes as well as bank Fixed Deposits. The current rate of interest is 7.1% for Q2 of FY 2025-26
• Since it is a government-backed saving scheme, investors can enjoy safe and secure investments for long-term
• The minimum investment that should be made in a financial year is Rs. 500 which is great for those who cannot invest a huge sum of money
• Investors can enjoy EEE tax benefits under which the principal amount, the interest earned, and the maturity amount are exempt from taxes
• You can open a post office PPF account either by cheque or cash, whichever is more convenient
• The maturity period of PPF account is 15 years. However, you can extend the same in blocks of 5 years after the original maturity date is reached, with or without making fresh contributions
• You can avail the nomination facility
• Premature withdrawals are also allowed but only after completion of 5 years of continuous investment
• Investors can also avail loan facility from the 3rd financial year
• Premature closure of PPF account is also available under special circumstances

PPF Historical Interest Rates

Read more on PPF Interest Rate 2025

FAQ

Can I transfer PPF from a post office to SBI?

Subscribers of PPF account can transfer their PPF account from a post office to any authorized bank, vice versa. In this case, the account will be considered as a continuing account.

Is it safe to open PPF account in Post Office?

Yes, opening PPF account at a post office is as safe as opening an account with an authorized bank. You can view your account balance, make online deposits, etc. conveniently by using the IPPB app.

Which is better for PPF account, bank or post office?

Both are equally benefiting. Whether you open a PPF account at the bank or a post office, the features of the scheme remain same. So, both the ways of opening an account are safe and convenient. It should be taken into consideration that just like banks, post offices are now offering online facilities to access PPF and other government saving scheme accounts online for the subscribers. You can download the IPPB app to avail post office online services.