PPF compensation

PPF (Public Provident Fund) compensation refers to the interest earned on your PPF account balance. It is a government-backed savings scheme where your deposited money grows with interest over time. The government sets a fixed interest rate annually, which is compounded yearly, ensuring your savings increase regularly. This interest is tax-free, making PPF a popular long-term investment option. Essentially, the compensation is the return or profit you make on your contributions, helping you build wealth steadily with the added benefit of safety and tax advantages.