PPF Investment Summary

Annual Contribution ₹1,00,000
Monthly Equivalent ₹8,333/month
PPF Interest Rate 7.1% p.a. (current rate)
Investment Period 15 years
Total Amount Invested ₹15,00,000
Interest Earned (Tax-Free) ₹12,12,139
Maturity Corpus ₹27,12,139

Tax Benefit: You also save up to ₹31,200 per year in income tax (at 30% + 4% cess) via 80C deduction on PPF contributions. Over 15 years, that's ₹4,68,000 in total tax savings.

Year-by-Year PPF Growth

Year Annual Deposit Total Deposited Interest Earned Balance
Year 1 ₹1,00,000 ₹1,00,000 ₹7,100 ₹1,07,100
Year 2 ₹1,00,000 ₹2,00,000 ₹21,804 ₹2,21,804
Year 3 ₹1,00,000 ₹3,00,000 ₹44,652 ₹3,44,652
Year 4 ₹1,00,000 ₹4,00,000 ₹76,222 ₹4,76,222
Year 5 ₹1,00,000 ₹5,00,000 ₹1,17,134 ₹6,17,134
Year 7 ₹1,00,000 ₹7,00,000 ₹2,29,682 ₹9,29,682
Year 13 ₹1,00,000 ₹13,00,000 ₹8,71,095 ₹21,71,095
Year 14 ₹1,00,000 ₹14,00,000 ₹10,32,343 ₹24,32,343
Year 15 ₹1,00,000 ₹15,00,000 ₹12,12,139 ₹27,12,139

Compare Different Contribution Amounts

How much does contributing more each year change your PPF maturity?

Annual Contribution Total Invested Interest Earned Maturity Amount
₹50,000/year ₹7,50,000 ₹6,06,070 ₹13,56,070
₹75,000/year ₹11,25,000 ₹9,09,105 ₹20,34,105
₹1,00,000/year ₹15,00,000 ₹12,12,139 ₹27,12,139
₹1,50,000/year ₹22,50,000 ₹18,18,209 ₹40,68,209

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Frequently Asked Questions

How much will PPF give if I invest ₹1 Lakh/year for 15 years?

At the current PPF rate of 7.1%, investing ₹1 Lakh per year for 15 years gives a maturity corpus of ₹27,12,139. Total investment is ₹15,00,000, and you earn ₹12,12,139 in tax-free interest.

Is PPF interest completely tax-free?

Yes. PPF falls under EEE (Exempt-Exempt-Exempt) tax status: contributions qualify for 80C deduction (up to ₹1.5L/year), interest earned is fully tax-free, and the maturity amount is also tax-free. This makes PPF one of the most tax-efficient savings instruments in India.

Can I withdraw PPF before 15 years?

Partial withdrawal is allowed from Year 7 onwards — up to 50% of the balance at end of Year 4 or Year 6 (whichever is lower). Full premature closure is allowed only after 5 years for specific reasons (serious illness, higher education). Otherwise PPF locks in for the full 15-year tenure.

Should I invest in PPF or ELSS for tax saving?

PPF gives guaranteed 7.1% tax-free returns with zero market risk. ELSS (equity mutual funds) can give 12–15% returns but with market volatility. For risk-averse investors or those prioritising capital preservation, PPF is excellent. For wealth creation over 10+ years with some risk tolerance, ELSS tends to outperform.

Can I deposit more than ₹1.5 lakh in PPF?

No. The maximum annual PPF contribution is ₹1,50,000. Amounts above this do not earn interest and are not eligible for 80C deduction. The minimum annual deposit is ₹500. You can make deposits in up to 12 instalments per financial year.

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