Calculate tax-free returns at 7.1% | EEE Status
✓ 7.1% Interest - Completely Tax-Free (Q2 FY 2025-26)
✓ 80C Deduction - Save up to ₹46,800 tax on ₹1.5L investment
✓ No TDS - Interest and maturity amount fully exempt
✓ Government Backed - 100% Safe with sovereign guarantee
🔒 Compounded annually, credited yearly
At 30% slab on ₹1.50 L
15Y Total: ₹6.75 L
| Year | Opening | Contribution | Interest | Closing |
|---|---|---|---|---|
| Y1 | ₹0 | ₹1.50 L | ₹10,650 | ₹1.61 L |
| Y2 | ₹1.61 L | ₹1.50 L | ₹22,056 | ₹3.33 L |
| Y3 | ₹3.33 L | ₹1.50 L | ₹34,272 | ₹5.17 L |
| Y4 | ₹5.17 L | ₹1.50 L | ₹47,355 | ₹7.14 L |
| Y5 | ₹7.14 L | ₹1.50 L | ₹61,368 | ₹9.26 L |
| Y6 | ₹9.26 L | ₹1.50 L | ₹76,375 | ₹11.52 L |
| Y7 | ₹11.52 L | ₹1.50 L | ₹92,447 | ₹13.95 L |
| Y8 | ₹13.95 L | ₹1.50 L | ₹1.10 L | ₹16.54 L |
| Y9 | ₹16.54 L | ₹1.50 L | ₹1.28 L | ₹19.32 L |
| Y10 | ₹19.32 L | ₹1.50 L | ₹1.48 L | ₹22.30 L |
| Y11 | ₹22.30 L | ₹1.50 L | ₹1.69 L | ₹25.49 L |
| Y12 | ₹25.49 L | ₹1.50 L | ₹1.92 L | ₹28.91 L |
| Y13 | ₹28.91 L | ₹1.50 L | ₹2.16 L | ₹32.57 L |
| Y14 | ₹32.57 L | ₹1.50 L | ₹2.42 L | ₹36.49 L |
| Y15 | ₹36.49 L | ₹1.50 L | ₹2.70 L | ₹40.68 L |
Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, offering attractive interest rates with complete tax exemption. It's the best risk-free investment option with EEE (Exempt-Exempt-Exempt) tax status.
Our calculator helps you plan PPF investments with features like partial withdrawal calculator (from 7th year), extension calculator (5-year blocks), year-wise breakdown, and comparison with FD/NSC/SIP options.
7.1% per annum - Completely tax-free
Compounded annually, calculated monthly. Interest credited on March 31st every year.
Minimum: ₹500/year (account becomes inactive if not met)
Maximum: ₹1,50,000/year (80C tax deduction limit)
15 years mandatory from date of account opening
Partial withdrawal from 7th year. Can be extended in 5-year blocks indefinitely.
Investment: 80C deduction up to ₹1.5L
Interest: Completely tax-free
Maturity: Entire amount tax-free
✓ Any Post Office across India
✓ Authorized banks (SBI, ICICI, HDFC, etc.)
✓ Online through netbanking (most banks)
✓ Loan facility from 3rd to 6th year (max 25% of balance)
✓ Nomination facility available
✓ Account can be transferred across India
| Feature | PPF | FD (Fixed Deposit) | NSC | SSY |
|---|---|---|---|---|
| Interest Rate | 7.1% | 6.5-7.5% | 7.7% | 8.2% |
| Tax on Interest | Tax-Free | Taxable (TDS) | Taxable | Tax-Free |
| Tax on Maturity | Tax-Free (EEE) | Taxable | Taxable | Tax-Free (EEE) |
| 80C Deduction | Yes (₹1.5L) | Only Tax Saver FD | Yes (₹1.5L) | Yes (₹1.5L) |
| Lock-in Period | 15 years | 7 days - 10Y | 5 years | 21 years |
| Risk Level | Zero (Govt.) | Very Low | Zero (Govt.) | Zero (Govt.) |
| Partial Withdrawal | From 7th year | Anytime (penalty) | Not allowed | After 18 years |
Maximum withdrawal: 50% of balance at end of 4th year preceding withdrawal year
Example: To withdraw in Year 10, check balance at end of Year 6. Max withdrawal = 50% of Year 6 balance.
Allowed only after 5 years for:
Penalty: 1% reduction in interest rate
Best for: Continued long-term wealth creation
Best for: Passive income generation
⏰ Important: Extension request must be submitted before 1 year of maturity ends. Extensions are done in 5-year blocks and can be repeated indefinitely.
Interest calculated on lowest balance between 5th and month-end. Deposit by 4th for full month interest.
Deposit ₹1.5L in April instead of March for 12 extra months of interest. Can add ₹15,000+ extra returns.
Both spouses can have separate PPF accounts. Double 80C benefit + double wealth accumulation.
Deposit minimum ₹500/year to keep account active. Dormant accounts don't earn interest and need reactivation.
From 3rd to 6th year, take loan at 1% interest (against 25% of balance) for emergencies instead of premature closure.
After 15 years, extend in 5-year blocks. Corpus continues growing tax-free at 7.1% - better than most options.
7.1% tax-free = ~10.1% taxable (30% slab). Better than most FDs after tax. Safe + tax-free combo is unbeatable.
Minor's PPF with parent as guardian. By age 21, substantial corpus + financial discipline + separate 80C benefit.
Govt reviews rates quarterly. If rates drop significantly, consider extending without contribution for better options elsewhere.
Start at 30, by 45 (15Y) have ₹40L+ tax-free. Extend till 60 for ₹1Cr+ guaranteed retirement corpus.
The current PPF interest rate is 7.1% per annum (Q2 FY 2025-26), compounded annually. This rate is set by the Government of India quarterly and is completely tax-free under EEE (Exempt-Exempt-Exempt) status. Interest is calculated monthly but credited to the account at the end of each financial year on March 31st.
PPF interest is calculated on the lowest balance between the 5th and last day of each month. Formula: Interest = Balance × 7.1% / 12 (monthly). For maximum interest, deposit before the 5th of every month. For example, ₹1.5 lakh deposited in April earns full year interest, but if deposited in March, earns only one month interest for that year.
Minimum investment: ₹500 per year (account becomes inactive if not met). Maximum investment: ₹1.5 lakh per year (qualifies for 80C tax deduction). Lock-in period: 15 years mandatory. Account can be opened at any Post Office or authorized bank. Only one PPF account per individual allowed (additional accounts will not earn interest).
Partial withdrawal: Allowed from 7th year onwards (after 5 complete years). Maximum 50% of balance at end of 4th year preceding withdrawal year. Only 1 withdrawal per year allowed. Full withdrawal: After 15 years of maturity. Premature closure: Only in exceptional cases (serious illness, higher education) after 5 years with penalty of 1% interest reduction.
Yes, PPF can be extended indefinitely in blocks of 5 years after maturity. Two options: (1) With contribution: Continue depositing up to ₹1.5L/year and earn 7.1%, or (2) Without contribution: No deposits, but existing balance continues earning interest. You can make partial withdrawals during extension. Apply for extension before 1 year of maturity ends.
PPF enjoys EEE (Exempt-Exempt-Exempt) status - best tax treatment in India. Investment: Up to ₹1.5L qualifies for 80C deduction (save up to ₹46,800 tax at 30% slab). Interest: Completely tax-free (unlike FD where interest is taxable). Maturity: Entire maturity amount is tax-free. No TDS deducted at any stage. This makes 7.1% tax-free equivalent to ~10.1% taxable return.