Calculate your Public Provident Fund maturity amount and returns
Min: ₹500 | Max: ₹1,50,000 per year
Min: 15 years (lock-in period)
Current rate: 7.1% (Govt. notified)
₹0
0.0%
Returns on Investment
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Avg Yearly Interest
| Year | Opening Balance | Deposit | Interest Earned | Closing Balance |
|---|---|---|---|---|
| Year 1 | ₹0 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| Year 2 | ₹1,60,650 | ₹1,50,000 | ₹22,056 | ₹3,32,706 |
| Year 3 | ₹3,32,706 | ₹1,50,000 | ₹34,272 | ₹5,16,978 |
| Year 4 | ₹5,16,978 | ₹1,50,000 | ₹47,355 | ₹7,14,334 |
| Year 5 | ₹7,14,334 | ₹1,50,000 | ₹61,368 | ₹9,25,701 |
| Year 6 | ₹9,25,701 | ₹1,50,000 | ₹76,375 | ₹11,52,076 |
| Year 7 | ₹11,52,076 | ₹1,50,000 | ₹92,447 | ₹13,94,524 |
| Year 8 | ₹13,94,524 | ₹1,50,000 | ₹1,09,661 | ₹16,54,185 |
| Year 9 | ₹16,54,185 | ₹1,50,000 | ₹1,28,097 | ₹19,32,282 |
| Year 10 | ₹19,32,282 | ₹1,50,000 | ₹1,47,842 | ₹22,30,124 |
| Year 11 | ₹22,30,124 | ₹1,50,000 | ₹1,68,989 | ₹25,49,113 |
| Year 12 | ₹25,49,113 | ₹1,50,000 | ₹1,91,637 | ₹28,90,750 |
| Year 13 | ₹28,90,750 | ₹1,50,000 | ₹2,15,893 | ₹32,56,643 |
| Year 14 | ₹32,56,643 | ₹1,50,000 | ₹2,41,872 | ₹36,48,515 |
| Year 15 | ₹36,48,515 | ₹1,50,000 | ₹2,69,695 | ₹40,68,209 |
✓ Withdrawal Eligible
You can make partial withdrawal from year 7 onwards
Rule: You can withdraw up to 50% of the balance at the end of 4th year preceding the year of withdrawal. Only one withdrawal per financial year is allowed.
⚠ Not Eligible
Loan facility available only from 3rd to 6th year
See how different interest rates affect your maturity amount with yearly investment of ₹1,50,000 for 15 years.
| Interest Rate | Total Investment | Interest Earned | Maturity Amount | Difference |
|---|---|---|---|---|
| 6.5% p.a. | ₹22,50,000 | ₹13,77,325 | ₹36,27,325 | +₹36,27,325 |
| 7% p.a. | ₹22,50,000 | ₹15,19,353 | ₹37,69,353 | +₹37,69,353 |
| 7.1% p.a.(Current) | ₹22,50,000 | ₹15,48,515 | ₹37,98,515 | +₹37,98,515 |
| 7.5% p.a. | ₹22,50,000 | ₹16,67,755 | ₹39,17,755 | +₹39,17,755 |
| 8% p.a. | ₹22,50,000 | ₹18,22,817 | ₹40,72,817 | +₹40,72,817 |
| 8.5% p.a. | ₹22,50,000 | ₹19,84,840 | ₹42,34,840 | +₹42,34,840 |
* PPF interest rate is reviewed quarterly by the government and may change.
Compare returns for different yearly investment amounts over 15 years at 7.1% interest.
| Yearly Investment | Total Invested | Interest Earned | Maturity Amount | Tax Saved (80C) |
|---|---|---|---|---|
| ₹50,000 | ₹7,50,000 | ₹5,16,172 | ₹12,66,172 | ₹15,000 |
| ₹75,000 | ₹11,25,000 | ₹7,74,257 | ₹18,99,257 | ₹22,500 |
| ₹1,00,000 | ₹15,00,000 | ₹10,32,343 | ₹25,32,343 | ₹30,000 |
| ₹1,25,000 | ₹18,75,000 | ₹12,90,429 | ₹31,65,429 | ₹37,500 |
| ₹1,50,000(Current) | ₹22,50,000 | ₹15,48,515 | ₹37,98,515 | ₹45,000 |
* Tax savings calculated assuming 30% tax bracket under Section 80C. Maximum deduction limit is ₹1.5 lakh per year.
Public Provident Fund (PPF) is a long-term savings-cum-investment scheme backed by the Government of India. Introduced in 1968, PPF offers attractive interest rates with guaranteed returns and complete tax exemption, making it one of the most popular investment options for retirement planning and wealth creation.
PPF combines the best of safety, returns, and tax benefits - a rare combination in investment products. The scheme is available through post offices and authorized banks across India.
FV = P × [((1 + r)^n - 1) / r]
Where:
Example Calculation:
For yearly investment of ₹1,50,000 at 7.1% for 15 years:
100% safe with sovereign guarantee. Principal and interest both are fully secured by Government of India.
Investment qualifies for 80C deduction. Interest earned is tax-free. Maturity amount is completely exempt from tax.
Interest rate reviewed quarterly. Current rate: 7.1% p.a. compounded annually - higher than most fixed deposits.
Minimum ₹500 per year, maximum ₹1.5 lakh. Make deposits in lump sum or up to 12 installments per year.
Loan available from 3rd-6th year. Partial withdrawal from 7th year. Both facilities help in emergencies.
After 15 years, extend in blocks of 5 years indefinitely with or without further contributions.
Your annual PPF contribution qualifies for tax deduction under Section 80C of the Income Tax Act.
Interest accrued annually on your PPF balance is completely tax-free. No need to show in ITR.
The entire maturity proceeds (principal + accumulated interest) are completely tax-free at withdrawal.
| Investment | Amount | 80C Benefit | Interest Taxable? | Maturity Taxable? |
|---|---|---|---|---|
| PPF | ₹1,50,000 | ₹45,000 | No ✓ | No ✓ |
| Bank FD | ₹1,50,000 | - | Yes ✗ | Yes ✗ |
| NSC | ₹1,50,000 | ₹45,000 | Yes ✗ | Yes ✗ |
PPF allows you to take a loan against your accumulated balance, providing liquidity during the lock-in period without breaking the account.
Unlike loans, partial withdrawals don't need to be repaid. They provide liquidity for genuine needs during the lock-in period.
| Feature | PPF | ELSS | NSC | Tax Saver FD |
|---|---|---|---|---|
| Lock-in Period | 15 years | 3 years | 5 years | 5 years |
| Returns | 7.1% (current) | 10-15% (variable) | 7.0% | 5.5-7.0% |
| Risk | Zero (Govt. backed) | High (market-linked) | Zero (Govt. backed) | Very Low (DICGC) |
| Tax on Interest | Exempt | NA (no interest) | Taxable | Taxable |
| Tax on Maturity | Exempt | 10% above ₹1L | Taxable | Taxable |
| Loan Facility | Yes (3rd-6th year) | No | Yes | No |
| Partial Withdrawal | Yes (from 7th year) | After 3 years | No | No |
| Best For | Long-term, risk-free, tax-free | High returns, short lock-in | Conservative, 5-year horizon | Very conservative |
Failing to deposit minimum ₹500 in a year makes the account inactive with ₹100 penalty plus ₹50 per year. Account won't earn interest until reactivated. Always deposit at least minimum amount.
PPF interest is calculated on the lowest balance between 5th and last day of month. Deposit before 5th of each month to earn interest for that entire month. Depositing on 6th means losing that month's interest.
Only one PPF account per person is allowed. If you open second account, it will be closed and refunded without interest. However, you can open separate account for minor child.
If you can afford, always deposit maximum ₹1.5 lakh to get full 80C benefit and maximize compounding. Even ₹12,500 per month can add up to significant difference over 15 years.
Closing PPF before 15 years reduces interest by 1% and you lose the power of long-term compounding. Use loan or withdrawal facilities instead for emergency needs.
You can extend PPF in 5-year blocks after maturity. Money continues to earn tax-free interest. If you don't need funds immediately, extension is beneficial especially if no better tax-free option available.
Always nominate someone for your PPF account. In case of unfortunate event, nominee gets balance without legal hassles. Nomination can be updated anytime.
Government reviews PPF rate quarterly. Stay updated as rate changes affect your long-term returns planning. Current rate is 7.1% but it has varied between 7.1% - 8.0% in recent years.
Make deposits before 5th of the month to earn interest for that month. Depositing ₹1.5L on 4th April vs 6th April makes huge difference over 15 years.
If possible, deposit entire ₹1.5 lakh at start of financial year (before 5th April). This maximizes compounding throughout the year compared to monthly deposits.
Each family member can have own PPF. Family of 4 can invest ₹6 lakh per year collectively, creating large retirement corpus with full tax benefits.
After 15 years, extend without contribution if you don't need funds. Existing balance continues earning tax-free interest - better than bank FD.
Don't put entire ₹1.5L 80C limit in PPF alone. Diversify across PPF (security), ELSS (returns), insurance (protection) for optimal portfolio.
If you need funds in years 3-6, take PPF loan at low interest. Repay from bonus/windfall. This keeps your PPF corpus growing while meeting liquidity needs.
Set up auto-transfer from salary account to PPF immediately after salary credit. Automates discipline and you won't miss the money.
Maintain PPF passbook and review annually. Seeing corpus grow motivates continued investment and reinforces long-term discipline.
PPF account matures after 15 years but actual period is 15 years + remaining months of opening year.
Interest is credited annually on March 31st. Check passbook after March 31 to see full year's interest.
You can open PPF account at any post office or authorized banks (SBI, ICICI, HDFC, Axis, etc.).
Transfer of PPF account from one bank/post office to another is free once per financial year.
Minor's PPF account can be operated by guardian. On attaining majority, operation transfers to account holder.
If you become NRI, you can continue existing account till maturity but cannot open new or extend existing.
PPF balance is exempt from wealth tax and cannot be attached under any court order or decree.
Nomination can be changed multiple times. Keep it updated especially after marriage or birth of children.
Digital PPF accounts can be opened online through net banking of authorized banks.
PPF statements can be downloaded online. Maintain digital and physical records for tax filing.
Disclaimer: This calculator provides estimated values for educational purposes only. PPF interest rates are reviewed and notified by the Government of India quarterly and are subject to change. The current rate shown (7.1% p.a.) may not reflect the latest rate. Actual maturity amount may vary based on rate changes during the tenure. Tax benefits under Section 80C are subject to limits and prevailing tax laws. Please verify current interest rates and tax implications from official sources or consult a qualified tax advisor before making investment decisions.