What does it take to stay invested in PPF? MintGenie explains 

Personal Finance 

Public Provident Fund is a government-sponsored scheme with a current interest rate of 7.1%.

The limit of investment in a PPF account is rupees 1,50,000 per year and the investment tenure is 15 years.

With yearly contributions, the amount invested to date is 22.50 lakhs and the interest earned is 18.18 lakhs.

With monthly contributions, the amount invested to date is 22.50 lakhs and the interest earned is 17.70 lakhs.

If the investor continues the investment for the next 15 years, he will become a multimillionaire.

Employees' Provident Fund Organisation deposits offer a higher interest rate of 8.15%.

EPF investments are taxable only when they exceed a certain limit specified by the Income Tax Act, 1961.

Early withdrawal from a PPF account is limited to one each year after five years, subject to a one percent deduction of interest amount.

The government has strict rules in place for premature closure of PPF accounts including a one percent deduction of interest amount.