Public Provident Fund - Investment in India

• The Public Provident Fund Scheme is a statutory scheme of the Central
  Government of India.
• The Scheme is for 15 years.
• The rate of interest is 8% compounded annually.
• The minimum deposit is 500/- and maximum is Rs. 70,000/- in a financial year.
• One deposit with a minimum amount of Rs.500/- is mandatory in each financial year.

From where to buy?
Public Provident Fund account can be opened at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country. The account can be opened by an individual in his own name, on behalf of a minor of whom he is a guardian, or by a Hindu Undivided Family.

E.g.

Let's say you invest Rs 24,000 in the PPF. Which means you will have to save around Rs 2,000 every month towards this kitty.

Now let's assume that, every year, you save the same amount, Rs 24,000.

Over 15 years (the tenure of the investment), at 8% per annum, your kitty would be worth Rs 7,79,914.85.

References: - Basic PPF info
http://www.bajajcapital.com/gss/ppf.html
http://www.iloveindia.com/finance/post-office/public-provident-fund.html
http://www.rediff.com/getahead/2005/may/06ppf.htm - Use PPF to be rich
http://in.rediff.com/getahead/2005/may/03save.htm - How to save?
http://in.rediff.com/getahead/2005/mar/08ppf.htm - How to open PPF account?
http://www.rediff.com/getahead/2005/feb/25ppf.htm - 10 things to know about PPF