Should taxpayers still invest in small savings schemes such as PPF?

As tax expert Balwant Jain aptly puts it: “Yes, because of its safety, tax-free return and simplicity of the product.” These three qualities remain the strongest reasons why PPF has retained its appeal over decades.

Why taxpayers still flock to PPF?

1. PPF is one of the safest long-term investment options in India. The government guarantees the returns, making it attractive during volatile markets.

2. PPF enjoys triple EEE benefit status. With an EEE (Exempt-Exempt-Exempt) structure, your contribution qualifies for deduction under Section 80C, the interest earned is tax-free, and the maturity amount is also exempt from tax. This makes PPF one of the most efficient fixed-income instruments available to Indian taxpayers, particularly those in higher tax brackets.

3. PPF interest rate (as revised quarterly) generally stays around 7% range, which is high for a sovereign-backed, tax-free instrument. At present, it is offering 7.1%

4. The 15-year lock-in is actually an advantage for disciplined long-term wealth-building.

Over 15 years, this allows investors to build a solid, predictable corpus through the power of compounding. For long-term goals such as retirement planning, children’s education, or creating a safety buffer, PPF provides unmatched stability.

Taxpayers should continue investing in PPF, not only for its tax efficiency and security but also for its simplicity, which makes disciplined long-term saving easier and more reliable.