Interest – 8% per annum compounded yearly.
Investment Limits – Minimum Rs. 500. Maximum Rs. 70,000 in a Financial Year. Deposits can be made in lump sum or in monthly installments.
Salient Features – Deposits are qualified for Income Tax rebate under Section 88 of IT Act. Deposits completely exempted from Wealth Tax. Interest is completely tax-free. Withdrawal is permissible every year from 7th Financial year. Loan Facility available from the 3rd Financial year. No attachment under Court decree.
 PPF turns out to be a very safe and sound option for saving purpose. This account can be opened by individuals in nationalized banks or Post Offices. I have my account in Post office. Even though, the PPF department is not yet computerized but you can keep track of your account via. Passbooks (these are update manually by bank staff). One more thing, when you get amount deposited into your account it is better if you ask your bank to fill in interest details for your account because normally interest details are not updated into passbook only entry related with deposits is reflected.