What is PPF and how does it work?

PPF (Public Provident Fund) is a government-backed long-term savings scheme in India. You deposit a fixed amount annually (minimum Rs.500, maximum Rs.1,50,000) for a lock-in period of 15 years. The deposits earn compound interest annually at the rate set by the government (currently 7.1% p.a.), and both the interest earned and the maturity amount are completely tax-free.

What is the current PPF interest rate?

The current PPF interest rate is 7.1% per annum, compounded annually. The rate is set by the Government of India and is reviewed quarterly. PPF interest rates have ranged from 7% to 8.7% over the past decade.

What is the minimum and maximum PPF deposit?

The minimum annual deposit for PPF is Rs.500 and the maximum is Rs.1,50,000 per financial year. You can make deposits in a lump sum or in up to 12 installments during the year. If you fail to deposit the minimum amount, the account becomes inactive and requires a penalty to reactivate.

Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. Your annual deposits up to Rs.1,50,000 qualify for tax deduction under Section 80C, the interest earned is tax-free, and the maturity amount is also completely tax-free. This makes PPF one of the most tax-efficient investment options in India.

Can I withdraw PPF before 15 years?

Partial withdrawals from PPF are allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th preceding year or the balance at the end of the preceding year, whichever is lower. Premature closure is allowed after 5 years only for specific reasons like serious illness or higher education.

Can I extend PPF after 15 years?

Yes, PPF can be extended after the initial 15-year maturity period in blocks of 5 years. You can extend with or without fresh contributions. If extended with contributions, you continue to get tax benefits under Section 80C. There is no limit on the number of 5-year extensions.

Is PPF better than FD?

PPF offers several advantages over FD: tax-free interest (FD interest is taxable), Section 80C deduction on deposits, government-backed safety, and higher effective post-tax returns. However, FD offers more flexibility with shorter tenures (7 days to 10 years) and no lock-in period. PPF is better for long-term tax-free wealth creation, while FD suits short-term needs.

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PPF Calculator · FY 2026-27

Public Provident Fund,
tax-free compounding.

Project your PPF balance over 15+ years at the current government rate. Tax-free maturity, EEE status, Section 80C deduction. No signup.

Last updated: April 17, 2026 FY 2026-27 / AY 2027-28

Your PPF plan

Drag the sliders or type a value. Numbers update instantly.

Yearly deposit ₹1,50,000

₹

PPF annual cap: ₹1,50,000 per individual

Interest rate 7.1% p.a.

% p.a.

Time period 15 years

years

PPF base lock-in is 15 years, extendable in 5-year blocks

Quick scenarios

Maturity amount

₹40,68,209

15 years at 7.1% p.a. · tax-free EEE

Deposited

₹22,50,000

Interest

₹18,18,209

Wealth multiple 1.81×

Maturity amount ₹0

Year-by-year balance

Year	Deposit	Interest	Balance

How PPF works

The Public Provident Fund is a 15-year government-backed savings scheme with annual compounding and an EEE tax status - meaning deposits qualify for 80C deduction, interest is tax-free, and the maturity amount is tax-free.

Key features

Lock-in - 15 years from the financial year of the first deposit. Extendable in 5-year blocks indefinitely.
Annual cap - ₹1,50,000 per individual per financial year
Min deposit - ₹500 per year to keep the account active
Interest rate - set quarterly by the government (currently 7.1% p.a.)
Withdrawals - partial withdrawal allowed after 7 years; full withdrawal at maturity
Loans - available between 3rd and 6th year of account

Why PPF works for long-term wealth

Triple tax exemption (EEE) - deposit, interest, and maturity are all tax-free
Section 80C deduction - up to ₹1,50,000 from taxable income (old regime only)
Sovereign guarantee - government-backed, zero credit risk
Compounding works - at 7.1%, a ₹1.5L annual deposit grows to over ₹40L in 15 years

PPF vs other tax-saving options

vs ELSS - PPF safer but lower returns; ELSS higher long-term returns but market risk
vs NPS - NPS has higher equity exposure and partial annuity requirement at retirement
vs FD - PPF is tax-free, FDs are taxable; FDs are more flexible (no lock-in)

Common questions

Frequently asked questions

Is PPF interest tax-free?

Yes. PPF has EEE status - deposits qualify for Section 80C deduction (up to ₹1.5L/year in old regime), interest is tax-free, and the maturity amount is tax-free. It's one of the most tax-efficient instruments in India.

What is the maximum PPF deposit per year?

₹1,50,000 per individual per financial year, across all PPF accounts (including the account opened for a minor child). Deposits above this don't earn interest and don't qualify for 80C.

Can I open more than one PPF account?

No - one PPF account per person. You can additionally open an account in the name of a minor child as guardian; that counts towards the same ₹1.5L cap.

Can I withdraw before 15 years?

Partial withdrawal is allowed from the 7th year onwards, up to 50% of the balance at the end of the 4th preceding year. Premature closure is permitted only in specific cases (medical emergency, higher education, NRI status change).

What happens after 15 years?

You can withdraw the entire amount tax-free, or extend in 5-year blocks (with or without further contributions). The extended balance continues to earn the current PPF rate.

How is PPF interest credited?

Interest is calculated on the lowest balance between the 5th and last day of each month and credited annually on March 31. To maximize, deposit before the 5th of each month, or pay the full ₹1.5L by April 5.

Disclaimer: PPF returns shown are based on the current government-set interest rate and assume the rate remains constant. The government revises PPF rates quarterly. Actual maturity may vary. PPF is a 15-year scheme - early withdrawals are limited. Please verify the current rate and rules at indiapost.gov.in or your bank before investing.

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Public Provident Fund,tax-free compounding.

Your PPF plan

Year-by-year balance

How PPF works

Key features

Why PPF works for long-term wealth

PPF vs other tax-saving options

Frequently asked questions

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Public Provident Fund,
tax-free compounding.