PPF (Public Provident Fund) is one of India's safest long-term savings instruments - offering guaranteed returns, tax-free interest, and 80C deduction benefits. These scenarios show you exactly what different contribution levels yield at maturity.

Each scenario assumes the maximum benefit of compounding: contributions made before April 5th, 7.1% annual rate compounded yearly, and balances held for the full statutory or extended tenure. The PPF formula is straightforward - interest is credited at the end of every financial year on the lowest balance between the 5th and the last day of each month - but the long lock-in period turns small annual contributions into significant corpora because compounding has 15+ years to work.

How to use these scenarios: pick the annual contribution closest to what you can commit, then compare the 15-, 20-, and 25-year tenures. Note that the 80C deduction (old regime only) gives an immediate tax saving equal to your slab rate × contribution - that benefit is on top of the maturity values shown.

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Frequently Asked Questions

What is the current PPF interest rate?

PPF rates are reviewed quarterly by the Ministry of Finance and have been 7.1% per annum since April 2020. These scenarios use 7.1% throughout the tenure for simplicity. The actual maturity value will move marginally if rates change in future quarters, but PPF rates rarely shift by more than 0.2–0.3% in either direction.

Are PPF returns really tax-free?

Yes - PPF enjoys EEE status (Exempt-Exempt-Exempt). Contributions up to ₹1.5 lakh per year are deductible under section 80C in the old regime, the annual interest credited is tax-free, and the maturity amount is fully exempt. This makes PPF unique among Indian investments - even a 7.1% PPF return is equivalent to ~10.1% pre-tax for someone in the 30% slab.

What's the maximum I can deposit each year?

₹1.5 lakh per financial year per individual, including any deposits made into a minor child's PPF account if you are the guardian. Deposits above ₹1.5 lakh are returned without interest. To maximise compounding, deposit the full amount before the 5th of April each year so the entire year's balance earns interest.

Can I extend PPF beyond 15 years?

Yes - after the initial 15-year lock-in, you can extend in blocks of 5 years indefinitely, with or without further contributions. The 20-year and 25-year scenarios on this page show what an extended account looks like. Extending without contributions still earns the prevailing PPF rate on the existing balance, making it a useful low-risk parking spot for retirement-bracket savings.

Want to Calculate with Your Own Numbers?

Every scenario uses standard assumptions. Use the calculator to input your exact figures.

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