The Public Provident Fund (PPF) is a government-backed, long-term savings scheme offering guaranteed, tax-free returns. With a 15-year lock-in period and the power of annual compounding, PPF is ideal for building a substantial retirement corpus while enjoying complete tax exemption under the EEE (Exempt-Exempt-Exempt) category.
PPF Investment Calculator
Your annual investment of Rs. 1,50,000 qualifies for tax deduction under Section 80C. Both the interest earned and maturity amount are completely tax-free (EEE status).
Investment vs Interest Breakdown
Corpus Growth Over Time
Year-wise Investment and Interest Accumulation
PPF Extension Calculator
PPF vs Other Investment Options
See how your PPF investment compares with other fixed-income instruments over the same tenure
Year-wise PPF Statement
| Year | Opening Balance | Deposit | Interest Earned | Closing Balance |
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Deposit your yearly contribution before the 5th of April to earn interest for the entire year. PPF interest is calculated on the lowest balance between the 5th and the last day of each month.
The PPF interest rate is revised quarterly by the Government of India. The current rate of 7.1% p.a. (Q2 FY 2025-26) is used for calculations. Actual returns may vary based on future rate revisions.
Frequently Asked Questions
The current PPF interest rate for Q2 FY 2025-26 (July-September 2025) is 7.1% per annum. The rate is set by the Government of India and is revised quarterly. Interest is compounded annually but calculated monthly on the lowest balance between the 5th and last day of each month.
The minimum investment in PPF is Rs. 500 per financial year, while the maximum is Rs. 1,50,000 per financial year. Investments beyond Rs. 1.5 lakh will not earn any interest and will not qualify for tax deduction under Section 80C.
No, PPF interest is completely tax-free under Section 10 of the Income Tax Act. PPF enjoys EEE (Exempt-Exempt-Exempt) status, meaning the contribution (up to Rs. 1.5 lakh), interest earned, and maturity amount are all exempt from income tax.
The lock-in period for PPF is 15 years from the date of account opening. However, partial withdrawals are allowed from the 7th financial year onwards (up to 50% of the balance from the 4th year or previous year, whichever is lower). Loans against PPF can be availed from the 3rd to 6th year.
Yes, you can extend your PPF account after the 15-year maturity period in blocks of 5 years. You can choose to extend with or without making further contributions. If you extend without contributions, your existing balance will continue to earn interest at the prevailing rate.
To maximize PPF returns, deposit your annual contribution before the 5th of April (start of the financial year). PPF interest is calculated on the lowest balance between the 5th and the last day of each month. Depositing early ensures your money earns interest for the entire year.
PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each month. However, the interest is compounded annually and credited to the account at the end of the financial year (March 31st). The formula considers your opening balance, deposits made, and the prevailing interest rate.
No, an individual can hold only one PPF account in their name. However, a parent or guardian can open a separate PPF account on behalf of a minor child, in addition to their own account. The combined contribution across all accounts cannot exceed Rs. 1.5 lakh per year.
Yes, you can avail a loan against your PPF balance from the 3rd to the 6th financial year of opening the account. The maximum loan amount is 25% of the balance at the end of the 2nd preceding financial year. The loan must be repaid within 36 months, and the interest rate is 1% above the PPF interest rate.
If you fail to deposit the minimum Rs. 500 in a financial year, your PPF account becomes inactive/discontinued. To revive it, you must pay a penalty of Rs. 50 per year of default, plus the minimum subscription of Rs. 500 for each year of default. The account continues to earn interest even when inactive.