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Public provident fund is a money deposit and tax saving scheme owned by the central government of India. It is considered as one of the safest tax saving mechanisms today. A public provident fund account can be opened either in a bank or a post office. It is worth noting that public provident fund banks account can be opened only in the nationalized banks. Contrary to many other post office schemes, public provident fund post office scheme is a long term scheme with a locking period of 15 years, which is extensible. A transfer of public provident fund post office account to banks is also possible and vice-versa. This means that if you had taken the public provident fund post office scheme, you can transfer your public provident fund account to a nationalized bank or vice-versa. In fact a public provident fund banks account transfer is also possible. i.e. you can transfer your account within banks also.

The public provident fund interest rate keeps fluctuating. It used to be 11% at one time and has come down to 8% currently. Basically public provident fund interest rate is fixed by government considering the economic conditions. Another important thing about public provident fund interest rate is that it is compounded annually. Regarding rate of interest of public provident fund banks as well as post offices do not differ. Both offer the same public provident fund interest rate. In fact all the features of a public provident fund post office account are similar to the public provident fund banks accounts. The only advantage with a public provident fund post office account is the huge network of post offices in India which extends to remote villages also. However, in cities usually the public provident fund banks accounts are more popular.

The above is just a summary of ppf scheme. All this and much more information is on offer at our dedicated moneysuperbazaar.com pages.