Calculate your PPF maturity amount
Enter your annual investment and tenure for year-wise balance projections.
What is PPF?
Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, introduced in 1968. It combines three features that are rare together: guaranteed returns, complete tax exemption, and sovereign safety (backed by the central government — zero credit risk).
You can open a PPF account at any nationalised bank, select private banks (HDFC, Axis, ICICI), or any post office. Since 2023, accounts can also be opened and operated online.
Current PPF Interest Rate
The current PPF interest rate is 7.1% per annum, applicable since April 2020. The rate is reviewed quarterly by the Ministry of Finance but has remained unchanged since then.
Historical context:
- PPF rate has never fallen below 7% in its history
- 20-year average: approximately 7.8–8%
- Highest ever: 12% in the early 1990s
- Once invested, the rate applies for the remaining tenure at whatever rate prevails each year
How PPF Interest is Calculated
PPF interest is calculated monthly on the minimum balance between the 5th and last day of each month, but credited annually on March 31.
Monthly interest = Balance × (Rate / 12)
Annual balance = Previous balance + Annual investment + Total monthly interest
Pro tip:
Deposit before the 5th of April each year (or before the 5th of each month for monthly investors) to maximise interest credit. Deposits made between the 5th and end of month lose that month's interest.
Worked Example: ₹1,50,000/year for 15 Years
| Year | Investment | Interest | Balance |
|---|---|---|---|
| Year 1 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| Year 5 | ₹1,50,000 | ₹59,238 | ₹9,27,274 |
| Year 10 | ₹1,50,000 | ₹1,34,180 | ₹21,58,848 |
| Year 15 | ₹1,50,000 | ₹2,27,990 | ₹40,68,209 |
Total invested: ₹22,50,000 · Maturity: ~₹40,68,209 · Interest earned: ~₹18,18,209 (100% tax-free)
The EEE Tax Advantage
PPF has triple tax exemption (EEE) — one of only a few instruments with this status:
E1: Exempt on Investment
Section 80C deduction up to ₹1.5 lakh per year on the amount invested
E2: Exempt on Interest
All interest earned every year is completely tax-free — no income tax, no TDS
E3: Exempt on Maturity
The entire maturity amount (principal + interest) is tax-free
Compare to FDs: interest is fully taxable every year at your slab rate. At 30% tax bracket, a 7% FD gives an effective post-tax return of only ~4.9%. PPF at 7.1% is tax-free — making it more attractive for anyone in the 20% or 30% tax bracket.
Withdrawal Rules
- Partial Withdrawal:Allowed from Year 7 onwards. Maximum: 50% of the balance at the end of the 4th year preceding the withdrawal year. Only one withdrawal per financial year.
- Loan Against PPF:Available from Year 3 to Year 6. Maximum: 25% of balance at end of 2nd preceding year. Must repay within 36 months. Rate: 1% above PPF rate.
- Premature Closure:Allowed after 5 years in specific cases (medical emergency, higher education). Penalty: 1% lower interest rate for the entire holding period.
- Extension:After 15 years, you can extend in blocks of 5 years — with or without continued contributions. Balance continues to earn interest during extension.
PPF vs FD vs ELSS vs NPS
| Feature | PPF | FD | ELSS | NPS |
|---|---|---|---|---|
| Returns | 7.1% (guaranteed) | 6.5–8% (taxable) | 12–15% (variable) | 8–12% (variable) |
| Risk | Zero | Very Low | Market risk | Market risk |
| 80C benefit | Yes | 5-yr FD only | Yes | Yes + 80CCD |
| Interest tax | Tax-free | Fully taxable | LTCG 10% >₹1L | Partial tax |
| Maturity tax | Tax-free | N/A | LTCG 10% >₹1L | 40% tax-free |
| Lock-in | 15 years | 5 years (80C) | 3 years | Till age 60 |
ELSS returns are historical estimates — actual returns vary. NPS tax treatment simplified for clarity.
See your PPF maturity projection
Input your annual investment and see year-by-year balance growth with tax-free returns highlighted.
Use PPF CalculatorFrequently Asked Questions
Can I open a PPF account for my child?
Yes. You can open a PPF account on behalf of a minor child. However, the ₹1.5 lakh annual limit applies to the combined contributions to your own account and the minor's account — they share the 80C limit.
What happens to PPF on the account holder's death?
The account is closed and proceeds are paid to the nominee/legal heirs. The nominee gets the money tax-free. There's no penalty for premature closure due to death.
Can I have two PPF accounts?
No. Only one PPF account per individual is allowed (except as guardian for a minor). If you accidentally open two, one will be closed and no interest is paid on that account.
Is PPF better than NPS for tax saving?
For pure tax saving with zero risk: PPF wins (EEE vs NPS's EET). For retirement corpus building: NPS may be better for equity exposure. Ideally, use both — PPF for guaranteed tax-free returns, NPS for equity-linked growth.
When is the best time to invest in PPF?
Before the 5th of April (for annual lump sum) or before the 5th of each month (for monthly SIP-style). This ensures you earn interest for the full month/year.