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See what your yearly PPF deposit matures to — the one long-horizon return in India you don’t have to assume, because the government sets it.
The short version
Depositing the full ₹1,50,000 a year for the standard 15-year term at the current 7.1% rate matures at roughly ₹40,67,085. You deposit ₹22,50,000; about ₹18,17,085 is interest — and all of it is tax-free.
One timing detail worth more than it looks: interest is calculated on the lowest balance between the 5th and the last day of each month. Depositing before 5 April rather than late in the financial year earns you a full extra year of interest on that contribution.
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Calculate Your PPF Returns Instantly
Estimate your PPF maturity amount, total investment, and tax-free returns using the current PPF interest rate of 7.1%.
Fixed
PPF Calculator
Total Maturity Amount
Total Investment
₹22,50,000
Total Interest Earned
₹18,18,209
What PPF is, in one paragraph
The Public Provident Fund is a government-backed savings scheme with a 15-year lock-in. You can deposit between ₹500 and ₹1,50,000 per financial year. Interest is set by the government and revised quarterly, compounded annually. It sits in the EEE category — the deposit qualifies for deduction, the interest isn’t taxed, and the maturity amount isn’t taxed. That last property is what makes the headline rate more impressive than it looks.
Why “tax-free” changes the comparison
Comparing PPF’s 7.1% against a fixed deposit’s headline rate is not a like-for-like comparison, because FD interest is taxed at your slab rate. For someone in the 30% bracket, a taxable instrument has to return well above 10% to match a tax-free 7.1% after tax. Run that comparison before concluding PPF is the conservative option.
How to use it
- Yearly deposit — anything from ₹500 to ₹1,50,000. The ceiling is per person per year across all your PPF accounts.
- Tenure — 15 years is the base term. Extend in five-year blocks and watch what the last block alone adds.
- Interest rate — currently 7.1%, but the government revises it quarterly, so model a lower rate too.
What to be realistic about
- The rate isn’t fixed for 15 years. It’s reset quarterly. Any projection assumes today’s rate holds, which it won’t.
- Liquidity is genuinely poor. Partial withdrawal is allowed only from the seventh year, and loans against the balance from the third.
- Inflation. A 7.1% return against 6% inflation is a real return closer to 1%. PPF preserves capital well; it builds wealth slowly.
- The ₹1.5 lakh ceiling is shared with your other Section 80C claims, so it may already be partly used.
Common questions
What if I miss a year?
The account is treated as discontinued. It can be revived by paying a small penalty plus the minimum ₹500 for each missed year. A discontinued account keeps earning interest but you can’t take a loan against it.
What happens after 15 years?
You can withdraw the full amount, or extend in five-year blocks either with or without further contributions. Extending is often the strongest move available — the balance is large by then, so a five-year extension compounds on a big base.
PPF or EPF?
They aren’t alternatives. EPF is deducted from salaried employment and carries an employer contribution; PPF is voluntary and open to anyone, including the self-employed. Most salaried people should hold both.
Educational content only — not financial advice. The PPF interest rate is set and revised quarterly by the Government of India; projections assume the current rate holds for the full term, which is unlikely. Verify current rates and rules with your bank, post office, or the National Savings Institute before acting.
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