What is the interest we earn on PPF investments?
You can open a Public Provident Fund (PPF) account in public and private sector banks. A PPF account can be opened in a post office as well. PPF is a central government scheme under which you get tax rebate on investments of up to Rs 1 lakh annually. In the current year, this rebate is available under Section 80C of the Income Tax Act and the same will be continued after the Direct Tax Code (DTC) comes into effect. The interest you earn on your PPF investments undergoes a change every year, currently it is at 8.8 per cent. PPF has a lock-in period of 5 years, after which you can redeem a part of your investments.