Calculate your Public Provident Fund maturity amount with year-wise breakdown. See how your annual investments grow with compounding at the current PPF rate.
The Public Provident Fund (PPF) is a government-backed long-term savings and investment scheme in India, introduced in 1968. It is one of the most popular tax-saving instruments due to its safety, guaranteed returns, and attractive tax benefits. PPF accounts can be opened at designated banks and post offices across India.
Key features of PPF include a minimum lock-in period of 15 years, annual contribution limits of ₹500 (minimum) to ₹1,50,000 (maximum), and compounding of interest on an annual basis. The scheme is backed by the Government of India, making it one of the safest long-term investments available.
The current PPF interest rate is 7.1% per annum, compounded annually. The rate is set by the Ministry of Finance and is reviewed every quarter. While the rate has changed over the years, it has historically remained in the 7–8.5% range.
PPF Interest Calculation
Interest is calculated on the lowest balance between the 5th and last day of each month, then credited at the end of the financial year (March 31).
Pro Tip: Deposit your yearly contribution before April 5th to earn interest for the entire year. If investing monthly, deposit before the 5th of each month.
PPF enjoys the coveted EEE (Exempt-Exempt-Exempt) tax status, making it one of the most tax-efficient investment instruments in India:
This triple tax benefit means PPF offers one of the highest post-tax returns among safe investment options in India.
A PPF account matures after 15 complete financial years from the year of opening. After maturity, you have the following options:
PPF has specific rules regarding withdrawals during the account tenure:
| Feature | PPF | Fixed Deposit (FD) |
|---|---|---|
| Interest Rate | 7.1% (government set) | 6.5% – 7.5% (bank set) |
| Lock-in Period | 15 years | 7 days to 10 years |
| Tax on Interest | Completely tax-free | Taxable as per slab |
| Section 80C Benefit | Yes (up to ₹1.5 lakh) | Only 5-year tax-saving FD |
| Tax on Maturity | Completely tax-free | Interest is taxable |
| Risk Level | Government-backed (zero risk) | DICGC insured up to ₹5 lakh |
| Max Investment | ₹1.5 lakh per year | No upper limit |
| Liquidity | Low (partial withdrawal from 7th year) | High (premature withdrawal with penalty) |
For long-term investors in higher tax brackets, PPF usually offers better post-tax returns than FDs due to its tax-free nature.
PPF (Public Provident Fund) is a government-backed long-term savings scheme in India. Any Indian resident can open a PPF account at designated banks or post offices. NRIs cannot open new PPF accounts but can continue existing ones until maturity. Only one PPF account is allowed per person. Parents or guardians can also open a PPF account on behalf of a minor child.
The current PPF interest rate is 7.1% per annum, compounded annually. The rate is set by the Government of India and reviewed quarterly. The interest is calculated on the minimum balance between the 5th and the last day of each month, so it is advisable to invest before the 5th of every month to maximize interest earned for that month.
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, making it one of the most tax-efficient instruments in India. Contributions up to ₹1.5 lakh per year qualify for deduction under Section 80C of the Income Tax Act. The interest earned is completely tax-free. The maturity amount is also entirely tax-free. No other fixed-return investment offers this triple exemption with government backing.
Partial withdrawal from PPF is allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th preceding financial year or the previous year, whichever is lower. Complete withdrawal is only possible at maturity (after 15 complete financial years). Premature closure is permitted after 5 years under specific circumstances such as serious illness, higher education requirements, or change of residency status.
Yes, a PPF account can be extended in blocks of 5 years after the initial 15-year maturity period. You have two options: extend with contributions (continue investing and earning interest on the growing balance) or extend without contributions (no new deposits, but the existing balance continues to earn interest). The extension request must be submitted within 1 year of maturity by filling out the appropriate form at your bank or post office.
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