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PPF Details

₹50,000

₹500₹1.5L
%
1%15%
yr
1 yr50 yr

Maturity Value

₹13.56 Lakh

15 yr · 7.1% p.a.

EEE Tax-Free80C Eligible
45%interest

Total Deposited

₹7,50,000

Interest Earned

₹6,06,070

Maturity Amount

₹13,56,070

Deposit vs Interest — per year

Yearly Balance Schedule

YearOpening BalanceDepositInterest EarnedClosing Balance
Year 1₹0₹50,000₹3,550₹53,550
Year 2₹53,550₹50,000₹7,352₹1,10,902
Year 3₹1,10,902₹50,000₹11,424₹1,72,326
Year 4₹1,72,326₹50,000₹15,785₹2,38,111
Year 5₹2,38,111₹50,000₹20,456₹3,08,567
Year 6₹3,08,567₹50,000₹25,458₹3,84,025
Year 7₹3,84,025₹50,000₹30,816₹4,64,841
Year 8₹4,64,841₹50,000₹36,554₹5,51,395
Year 9₹5,51,395₹50,000₹42,699₹6,44,094
Year 10₹6,44,094₹50,000₹49,281₹7,43,375
Year 11₹7,43,375₹50,000₹56,330₹8,49,704
Year 12₹8,49,704₹50,000₹63,879₹9,63,583
Year 13₹9,63,583₹50,000₹71,964₹10,85,548
Year 14₹10,85,548₹50,000₹80,624₹12,16,172
Year 15₹12,16,172₹50,000₹89,898₹13,56,070
Tip: PPF locks in for 15 years but you can extend in 5-year blocks. Use Advanced Options for the Senior Citizen rate benefit.

How It Works

The Public Provident Fund (PPF) is a government-backed long-term savings scheme with a 15-year lock-in period, extendable in 5-year blocks thereafter. Deposits earn tax-free interest compounded annually. The government revises the PPF rate quarterly — currently 7.1% p.a. Contributions qualify for Section 80C deduction (up to ₹1.5 lakh/year), and both interest and maturity proceeds are fully tax-exempt, making PPF one of the few EEE (Exempt-Exempt-Exempt) instruments in India.

PPF Maturity Formula

M = F × {[(1 + r)^n − 1] / r} × (1 + r) — where F is annual deposit, r is annual interest rate/100, and n is number of years (15 by default).

Example: ₹1.5 lakh/year at 7.1% for 15 years → Total deposited: ₹22.5 lakh. Maturity: ≈ ₹40.68 lakh. Interest earned: ≈ ₹18.18 lakh — completely tax-free.

Extending for another 5 years with continued deposits grows the corpus significantly due to the larger base — demonstrating the power of compound interest in the later years.

Key Facts

Lock-in Period
15 years (extendable in 5-year blocks).
Deposit Limits
₹500 minimum · ₹1,50,000 maximum per year.
Tax Status
EEE — deduction under 80C, tax-free interest, tax-free maturity.
Partial Withdrawal
Allowed from Year 7 onwards (up to 50% of Year 4 balance).

Frequently Asked Questions

What is PPF and who can open an account?

The Public Provident Fund (PPF) is a government-backed savings-cum-tax saving instrument launched in India in 1968. Any Indian resident individual can open a PPF account at a post office or designated bank. NRIs cannot open new accounts, but existing accounts can be continued till maturity.

What is the current PPF interest rate?

The PPF interest rate is set by the government every quarter. It has been 7.1% p.a. since April 2020 (as of 2026). Interest is calculated on the minimum balance between the 5th and last day of each month and credited to the account at year-end.

What is the minimum and maximum deposit for PPF?

The minimum annual deposit is ₹500 and the maximum is ₹1,50,000 per financial year. Deposits can be made in up to 12 instalments per year. If you miss the minimum deposit in a year, the account becomes inactive and attracts a ₹50 penalty per year to reactivate.

What are the tax benefits of PPF?

PPF enjoys EEE (Exempt-Exempt-Exempt) status: (1) Contributions up to ₹1.5 lakh/year are deductible under Section 80C, (2) interest earned is fully tax-exempt, and (3) the maturity amount is completely tax-free. This makes PPF one of the most tax-efficient investment options in India.

Can I withdraw from PPF before 15 years?

Partial withdrawals are allowed from the 7th year onwards (i.e., from FY 7). You can withdraw up to 50% of the balance at the end of the 4th year preceding the withdrawal year, or the balance at the end of the preceding year — whichever is lower. Full premature closure is allowed only in specific cases like serious illness or higher education.

Can I extend PPF beyond 15 years?

Yes. After the initial 15-year term, you can extend in blocks of 5 years — either with or without continued contributions. If extended without contributions, interest continues to accrue on the balance. You can extend multiple times, effectively making PPF a perpetual tax-free savings vehicle.