• A public provident fund can be opened at any branch of the State Bank of India or its subsidiaries. It can also be opened at any post office and some nationalized banks which even allow one to open an account online.
• The public provident fund form can be downloaded from the SBI website. A photograph and a pan card are necessary. An identity and residence proof is a must. A passbook is given which has all subscriptions, withdrawals, interest accrued and loans which are recorded.
• The interest rate offered is 8.7% per annum valid from 1st April 2013.The interest is compounded annually. The interest for the month is calculated based on the minimum balance available from the 5th of the month to the end of the month. The interest earned is tax free.
• The minimum amount that needs to be invested is INR 500 per financial year. The maximum amount that can be invested is INR 1 Lakh per annum. This amount can be invested in a single installment or in multiple installments not exceeding 12 per financial year. It is possible to make online payments towards the public provident fund only if the account is with SBI.
• The maximum tenure of a public provident fund is 15 years .A public provident fund can be extended post the 15 year period in blocks of 5 years each. During the additional period one can earn interest as well as make contributions. Once this account expires a new account can be opened.
• Any individual be it salaried or self employed can open a public provident fund .HUF's are no longer allowed to open a public provident fund.
• A depositor is allowed only one public provident fund is his name. If he opens another account and it is detected this account is closed and the principal is returned without any interest.
• If one forgets to make the minimum contribution of INR 500 per annum then the account is deactivated. This account can be reactivated on paying a penalty of INR 50 for each inactive year followed by the minimum contribution of INR 500 for each inactive year.
• This account can be opened only in the name of a single holder and no joint account is permitted. Nominees can be nominated for these accounts. On the death of the account holder nominees get these amounts. However they cannot keep these accounts active by making contributions. Premature closure is not permissible except on the death of the depositor.
• An account can be opened in the name of one's minor child. An individual can open only a single account in the name of the child of which he is the guardian.
• A loan facility against the public provident fund is available from the 3rd financial year excluding the year of deposit. Loans can be taken from the third year onwards till the sixth year. Up to a maximum of 25% of the balance at the end of the second immediately preceding year would be allowed as a loan. The principal amount needs to be repaid within 36 months of the first day of the month which follows the month in which the loan was sanctioned. The interest charged is 2% per annum against the prevailing interest rate. A fresh loan is not allowed if the previous loan amounts and interest is outstanding.
• Previously NRI's were not able to make contributions in public provident fund accounts opened before they became NRI's. Post 2003 a resident turned NRI is able to invest in the account through NRE/NRO bank accounts till maturity. After the completion of 15 years the amounts can be remitted to the host country .No extension is permissible for the NRI beyond the 15 year term. The amount is not taxable in India but might be taxed in the country of residence.

• Withdrawal is permitted from the 7th financial year. Only a single withdrawal is permitted in a year and this amount should not exceed 50% of the balance at the end of the 4th year or the balance at the end of the preceding year whichever is lesser.

• The investments made in a public provident fund are eligible for a deduction up to a maximum limit of INR 1 Lakh per financial year under Section 80 C of the income tax act.
• The interest earned in a public provident fund is not taxed.

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund