Firstly, PPF stands for Public Provident Fund, and it is an investment vehicle. It was first offered by the National Savings Institute in 1968. The PPF is unique and you can invest in it to earn hefty returns and save money.
The PPF is also called a "savings-cum-tax savings" investment. You do not pay tax on the money that you invest in a PPF. Neither do you have to pay tax on the interest that it earns.
Here's how this investment vehicle works. A PPF account is like a subscription. You have to deposit an amount in multiples of fifty, starting with a minimum amount of Rs. 500 to a maximum of Rs. 1,50,000 in a year. This investment cycle continues for 15 years, and you can invest in it further by extending it for five years.