5. A smart savings tool.
What tends to put investors off is the tenure of the investment, which is 15 years. But this can work to the investor's benefit. Investors can position it as a long-term tool with complete tax benefits.
For instance, if you are 30 years old when you open an account, on maturity the money will come in handy for your child's higher education or some such goal. If you are viewing it as a retirement kitty, then on maturity, extend it by a 5-year block.
There is a way out for those who desperately need some liquidity during the tenure of the investment. After the expiry of the 5th year from the date that the initial subscription is made, an account holder can make premature withdrawals. After the third financial year, excluding the year of the deposit, an investor is even allowed to take a loan on his investment.
But use this only as an emergency facility. Keep in mind the PPF is targeted towards long-term savings and position it accordingly in your portfolio.