PPF Investment Details

Yearly Investment Amount (₹)

₹500 ₹1,50,000

Maximum investment allowed: ₹1,50,000 per year

Time Period (Years)

15 Years 50 Years

PPF has a lock-in period of 15 years. You can extend in blocks of 5 years.

Expected Annual Interest Rate (%)

1% 15%

Current PPF interest rate: 7.1% per annum (compounded annually)

Your PPF Investment Results

₹57,21,391 PPF Maturity Amount

Total Investment

₹22,50,000

Total Interest

₹34,71,391

Return Multiple

2.5x

Effective Yield

154.3%

Principal Amount

Interest Earned

Your PPF Investment Details (Yearly/Monthly)

PPF Tax Benefits (Triple Exemption)

Investment deduction under Section 80C
Tax-free interest earnings during tenure
Tax-free maturity amount withdrawal
No TDS applicable on PPF accounts

Key PPF Rules & Limits

Minimum Investment

₹500 per year

Maximum Investment

₹1,50,000 per year

Lock-in Period

15 years (mandatory)

Extension

5 years blocks

Loan Facility

From 3rd to 6th year

Partial Withdrawal

From 7th year

PPF Investment Tips

Invest before 5th of each month for maximum interest
Complete yearly investment by March 31st
Consider extending after 15 years for continued benefits
Open accounts for family members to maximize investment
Keep track of interest crediting annually
Nominate beneficiaries for smooth transfer

What is PPF (Public Provident Fund)?

Public Provident Fund (PPF) is a popular long-term tax-saving investment scheme backed by the Government of India. It offers attractive interest rates with complete tax exemption under Section 80C of the Income Tax Act. PPF is ideal for building a retirement corpus due to its 15-year lock-in period and the power of compounding.

                Key Highlight: PPF offers triple tax benefits - investment deduction under 80C, tax-free interest earnings, and tax-free maturity amount (EEE status).
            

PPF Rules and Features

Minimum Investment: ₹500 per year
Maximum Investment: ₹1,50,000 per year
Lock-in Period: 15 years (mandatory)
Extension: Can be extended in blocks of 5 years
Interest Rate: Currently 7.1% per annum (reviewed quarterly)
Tax Benefits: Triple tax exemption (EEE status)
Loan Facility: Available from 3rd to 6th year
Partial Withdrawal: Allowed from 7th year onwards

How PPF Interest is Calculated

PPF interest is calculated on the lowest balance between the 5th and last day of each month. The interest is compounded annually and credited to your account at the end of each financial year. This unique calculation method makes it beneficial to invest early in the month, preferably before the 5th.

PPF vs Other Investment Options

PPF vs EPF: PPF has higher contribution limits and more flexibility
PPF vs NSC: PPF offers tax-free maturity, NSC doesn't
PPF vs ELSS: PPF has guaranteed returns, ELSS has market risk
PPF vs FD: PPF offers better post-tax returns due to tax exemption

PPF Investment Strategies

Invest Early: Make your annual contribution before April 5th to maximize interest
Monthly vs Lump Sum: Monthly investments provide better compounding
Extension Strategy: Consider extending for continued tax-free returns
Family Strategy: Open accounts for spouse and children to maximize investment
Succession Planning: Nominate beneficiaries for smooth transfer

PPF Withdrawal Rules

Maturity Withdrawal: Complete amount after 15 years
Partial Withdrawal: Up to 50% of balance from 7th year
Loan Against PPF: Up to 25% from 3rd to 6th year
Premature Closure: Only in exceptional cases with penalty

PPF Calculator - Frequently Asked Questions

What is the current PPF interest rate?

The current PPF interest rate is 7.1% per annum, compounded annually. The rate is reviewed quarterly by the government and has been stable around 7-8% range in recent years.

Can I invest more than ₹1.5 lakh in PPF?

No, the maximum investment limit in PPF is ₹1,50,000 per financial year. Any excess amount deposited will not earn interest and cannot be claimed as tax deduction.

What happens if I don't invest the minimum amount?

If you don't invest the minimum ₹500 per year, your PPF account becomes inactive. You'll need to pay a penalty of ₹50 per year plus the minimum contribution to reactivate it.

Can I close PPF before 15 years?

PPF cannot be closed before 15 years except in exceptional cases like serious illness or higher education. Premature closure involves penalty and loss of tax benefits.

Is PPF better than mutual funds?

PPF offers guaranteed returns with tax benefits but lower potential returns. Mutual funds have higher growth potential but with market risk. PPF is better for conservative investors seeking stable returns.

Can I take a loan against my PPF?

Yes, you can take a loan of up to 25% of your PPF balance from the 3rd to 6th year. The loan must be repaid within 6 years with interest.

PPF Calculator - Calculate Public Provident Fund Returns