PPF Calculator

Calculate maturity amount for Public Provident Fund (PPF) with 15-year contribution period

Investment Details

₹
₹500 ₹1,50,000

Min: ₹500 | Max: ₹1,50,000

6% 9%

Updated Q4 FY 2024-25: 7.1%

0 years 35 years

0-35 years (no contributions, only interest growth)

Note: PPF requires mandatory 15 years contribution period. After 15 years, you can extend without contributions for up to 35 more years.

Maturity Details

Enter investment details to calculate PPF maturity

About PPF

Key Features

  • Minimum investment: ₹500/year
  • Maximum investment: ₹1,50,000/year
  • Lock-in period: 15 years
  • Interest rate: 7.1% (Q4 FY 2024-25)

Formula

M = P × [((1 + i)^n - 1) / i] × (1 + i)

Where M = Maturity, P = Annual contribution, i = Interest rate, n = Years

Tax Benefits

  • Section 80C deduction (up to ₹1.5L)
  • Interest earned is tax-free
  • Maturity amount is tax-free

Withdrawal Rules

Partial withdrawal allowed after 7 years (up to 50% of balance). Loan available from 3rd to 6th year. Account can be extended in blocks of 5 years after maturity.

Frequently Asked Questions

Q: What is PPF (Public Provident Fund)?

PPF is a long-term government-backed savings scheme offering attractive interest rates (currently 7.1% annually) with complete tax exemption. It has a 15-year maturity period extendable in 5-year blocks. Investments qualify for tax deduction under Section 80C, interest earned is tax-free, and maturity proceeds are tax-exempt (EEE status), making it ideal for retirement planning and wealth creation.

Q: How is PPF interest calculated?

PPF interest is calculated monthly on the lowest balance between the 5th and last day of each month, then compounded annually. Interest is credited to the account at year-end. This method incentivizes depositing before the 5th of each month to maximize interest. The interest rate is revised quarterly by the government but has historically remained stable at 7-8% annually.

Q: What is the PPF maturity period and extension rules?

PPF has a mandatory 15-year maturity from the end of the financial year of account opening. After maturity, you can extend in blocks of 5 years indefinitely, either with or without contributions. Extension must be done within one year of maturity; otherwise, no further deposits are allowed though interest continues. Extended accounts retain tax benefits and withdrawal flexibility.

Q: What are PPF withdrawal rules?

Partial withdrawals are allowed from the 7th financial year onwards, limited to 50% of the balance at the end of the 4th preceding year or immediately preceding year, whichever is lower. Only one withdrawal per year is permitted. Full withdrawal is allowed at maturity (15 years) or for specific purposes like higher education or serious illness. Premature closure is allowed after 5 years in exceptional cases with interest penalty.

Q: How does PPF compare with EPF and NPS?

PPF offers guaranteed returns (7.1%), EEE tax status, and sovereign guarantee, suitable for conservative investors. EPF (Employee Provident Fund) is employer-linked, offers similar returns (~8.15%), with EEE status but limited to salaried individuals. NPS (National Pension System) is market-linked with potentially higher returns but taxable at withdrawal (EET status), offers flexibility but carries market risk. PPF suits risk-averse retirement planning.

Q: What are PPF tax benefits?

PPF enjoys Exempt-Exempt-Exempt (EEE) tax status: contributions up to ₹1.5 lakh annually qualify for deduction under Section 80C, interest earned is completely tax-free, and maturity/withdrawal proceeds are tax-exempt. This triple tax benefit makes PPF one of India's most tax-efficient long-term investments, especially valuable for individuals in higher tax brackets seeking tax-free retirement corpus.

Q: What are the minimum and maximum PPF contribution limits?

Minimum annual contribution is ₹500 (can be deposited in lump sum or installments, max 12 deposits/year). Maximum annual contribution is ₹1,50,000. Contributions below ₹500 annually make the account inactive (no interest), requiring reactivation with penalty. Contributions exceeding ₹1.5 lakh don't earn interest on the excess amount. Strategic planning helps maximize tax benefits while staying within limits.

Q: How do I open a PPF account?

PPF accounts can be opened at designated post offices or authorized bank branches (like SBI, ICICI, HDFC). Required documents include identity proof, address proof, PAN card, and passport-size photos. Nomination facility is available and recommended. One person can have only one PPF account (except guardian accounts for minors). Accounts can be opened online through net banking at participating banks. Initial deposit can be as low as ₹500.