PPF Calculator - Public Provident Fund

PPF (Public Provident Fund) is a government-backed long-term savings scheme offering guaranteed returns with complete tax exemption. The PPF calculator computes maturity amount by applying the current 7.1% annual interest rate compounded yearly on your annual contributions over the chosen tenure (minimum 15 years). It shows total invested amount, tax-free interest earned, and the final maturity value.

The current PPF interest rate is 7.1% per annum, compounded annually. This rate is set by the Government of India and reviewed quarterly. PPF rates have ranged from 7.1% to 8.7% over the past decade. The rate applies uniformly across all PPF accounts whether held at banks or post offices. Despite rate changes, existing deposits continue to earn at the prevailing rate for each quarter.

PPF enjoys Exempt-Exempt-Exempt (EEE) status, the most favorable tax treatment available. Your annual contribution (up to Rs 1.5 lakh) qualifies for Section 80C deduction, the interest earned throughout the tenure is completely tax-free, and the maturity amount is also entirely tax-exempt. No other comparable savings instrument offers this triple exemption, making PPF one of the most tax-efficient investments in India.

The minimum annual contribution is Rs 500 and the maximum is Rs 1,50,000 per financial year. You can deposit in a lump sum or up to 12 installments during the year. Contributions exceeding Rs 1.5 lakh do not earn interest and are not eligible for 80C deduction. The minimum Rs 500 must be deposited each year to keep the account active, failing which a penalty of Rs 50 per year applies for revival.

PPF has a mandatory 15-year lock-in period. The account can be extended in blocks of 5 years after maturity, with or without fresh contributions. Partial withdrawal is allowed from the 7th financial year (beginning of the 7th year from the year of opening). Premature closure is permitted only in specific cases like serious illness or higher education after completing 5 years, subject to 1% interest rate reduction.

Partial withdrawal from PPF is permitted from the beginning of the 7th financial year after the year of account opening. The maximum withdrawal is limited to 50% of the balance at the end of the 4th preceding year or the balance at the end of the immediately preceding year, whichever is lower. Only one withdrawal is allowed per financial year. These withdrawals are completely tax-free.

Yes, loans against PPF are available from the 3rd to the 6th financial year. The maximum loan amount is 25% of the balance at the end of the 2nd preceding financial year. The interest rate on the loan is 1% above the prevailing PPF rate. The loan must be repaid within 36 months. After the 6th year, withdrawals become available so loans are not offered beyond that.

PPF interest is calculated on the lowest balance between the 5th and the last day of each month. Interest is compounded annually and credited at the end of each financial year (March 31). To maximize interest, deposit your contribution before the 5th of each month, preferably before April 5 for lump sum deposits. Late deposits (after the 5th) earn interest only from the next month.

For long-term savings, PPF is significantly better than FD due to its EEE tax status. At 7.1% tax-free, PPF outperforms a 7% FD which yields only 4.9% post-tax in the 30% bracket. Over 15 years, Rs 1.5 lakh annual investment in PPF grows to approximately Rs 40.68 lakh (entirely tax-free) versus approximately Rs 35.5 lakh in FD (with around Rs 5 lakh going to tax). Use our FD calculator to compare.

Yes, a parent or guardian can open a PPF account for a minor child. However, the combined contribution to the parent PPF and child PPF cannot exceed Rs 1.5 lakh per year for 80C purposes. If you contribute Rs 1 lakh to your PPF, only Rs 50,000 more can go to the child account for tax benefits. Only one PPF account per person is allowed, and having two attracts merger or closure of the second account.

PPF accounts can be opened at designated post offices, SBI and its associate banks, and most nationalized and private banks including ICICI, HDFC, Axis, and Bank of Baroda. Online account opening is available through net banking at many banks. The PPF account is portable and can be transferred from one branch or bank to another or from bank to post office and vice versa without any charges.

After 15 years, you have three options: (1) Withdraw the entire maturity amount tax-free and close the account. (2) Extend in 5-year blocks without making fresh contributions. The existing balance continues to earn interest. (3) Extend with contributions. You can make fresh deposits up to Rs 1.5 lakh/year and claim 80C deduction. Extensions can be done indefinitely in 5-year blocks. Submit Form H for extension within 1 year of maturity.

PPF is an excellent component of retirement planning due to its safety, guaranteed returns, and tax-free growth. However, its 7.1% return may not beat inflation adequately for the full retirement corpus. A balanced approach uses PPF for the guaranteed debt portion and NPS or equity SIPs for the growth portion. PPF + NPS gives both 80C and 80CCD(1B) deductions totaling Rs 2 lakh.

Investing Rs 1,50,000 per year in PPF at 7.1% for 15 years gives a maturity amount of approximately Rs 40,68,209. Your total investment is Rs 22,50,000 and the tax-free interest earned is approximately Rs 18,18,209. If you extend for another 15 years (total 30 years) with the same contribution, the corpus grows to approximately Rs 1,54,50,906, with Rs 1,09,50,906 as tax-free interest.

NRIs cannot open new PPF accounts. However, if a resident Indian who already has a PPF account becomes an NRI, they can continue the existing account until its maturity (up to 15 years from the original opening date). The account earns interest until maturity but cannot be extended beyond the original 15-year period. After maturity, the NRI must close the account and repatriate the funds.

PPF is a voluntary savings scheme open to all Indian residents with a self-chosen contribution (up to Rs 1.5 lakh/year) and currently earns 7.1%. EPF (Employees Provident Fund) is mandatory for salaried employees where both employer and employee contribute 12% of basic salary. EPF currently earns 8.15%. Both enjoy EEE status. EPF is salary-linked while PPF is flexible. Both qualify under Section 80C.

PPF rates are reviewed quarterly by the government but have remained at 7.1% since 2020. Rate changes depend on government bond yields (PPF rate is typically linked to 10-year G-Sec yield). If RBI cuts repo rate significantly, PPF rate may reduce. However, any change applies only to the quarter in question and does not affect past accrued interest. The government tends to keep PPF rates stable to maintain investor confidence.

Yes, PPF accounts are fully portable. You can transfer from a post office to a bank, bank to post office, or between different banks. Submit a transfer request at the current institution. The receiving institution opens a new account linked to your existing one. The balance, tenure, and accumulated interest are transferred intact. There is no charge for PPF account transfer.

If you fail to deposit the minimum Rs 500 in any financial year, the PPF account becomes inactive (dormant). It continues to earn interest on the existing balance, but you cannot make withdrawals or take loans. To revive, you must pay Rs 500 for each defaulted year plus a penalty of Rs 50 per year along with the current year contribution. The account then resumes normal operations.

PPF offers Rs 1.5 lakh deduction under 80C with EEE tax status. NPS offers Rs 1.5 lakh under 80C plus an additional Rs 50,000 under 80CCD(1B), totaling Rs 2 lakh deduction. However, NPS maturity is partially taxable (annuity portion) while PPF maturity is fully tax-free. NPS gives market-linked returns (potentially 8-14%) while PPF gives fixed 7.1%. The ideal strategy is to invest in both for maximum tax savings and diversification.

Rs 500 per month means Rs 6,000 per year in PPF. At 7.1% for 15 years, the maturity amount is approximately Rs 1,62,729. Total invested: Rs 90,000. Tax-free interest: Rs 72,729. While this is a modest amount, it demonstrates the power of consistent small savings. Increasing to Rs 5,000/month (Rs 60,000/year) gives approximately Rs 16,27,284 at maturity with Rs 7,27,284 in tax-free interest.

No, an individual can hold only one PPF account. If a second account is discovered, it is merged with the first or closed, and the excess contributions beyond Rs 1.5 lakh do not earn interest. The only exception is a PPF opened in the name of a minor child by a guardian, which counts as a separate account but the combined 80C limit still applies.

PPF and ELSS serve different purposes. PPF offers guaranteed 7.1% tax-free returns with 15-year lock-in and zero risk. ELSS offers potentially higher returns (12-15% historical) with only 3-year lock-in but carries market risk and LTCG above Rs 1.25 lakh is taxed at 12.5%. For risk-averse investors, PPF is better. For those who can tolerate volatility, ELSS may deliver superior post-tax returns. Many investors use both to diversify.

If you extend PPF without fresh contributions, you can withdraw any amount at any time (one withdrawal per year). If you extend with contributions, withdrawal is limited to 60% of the balance at the start of the extension period, with one withdrawal per year. In both cases, the account continues earning interest on the remaining balance. These withdrawals are completely tax-free.

To maximize returns: (1) Deposit the full Rs 1.5 lakh annually. (2) Invest before April 5 each year in a lump sum to earn interest for the full year. (3) If investing monthly, deposit before the 5th of each month. (4) Continue extending beyond 15 years to let compounding work longer. (5) Do not withdraw prematurely. Over 30 years at 7.1%, Rs 1.5 lakh/year grows to over Rs 1.54 crore, entirely tax-free.

Form H is the application for extending a PPF account beyond the initial 15-year maturity period. It must be submitted within 1 year from the date of maturity. You can choose extension with or without fresh contributions, in blocks of 5 years. If you fail to submit Form H and make a deposit, the account is treated as extended without contributions by default. The form is available at banks and post offices.

PPF at 7.1% provides a real return of approximately 1-2% above the average inflation of 5-6%. While this positive real return preserves purchasing power, it offers modest wealth creation compared to equity. PPF is best viewed as the stable, tax-efficient foundation of your portfolio. Pair it with equity investments (SIP, NPS) that historically return 12-14% to create meaningful real wealth above inflation over the long term.

No, HUFs cannot open PPF accounts as per the revised rules. Only individual Indian residents can open PPF accounts. The restriction was introduced to ensure the scheme benefits individual savers. HUFs can invest in other tax-saving instruments like ELSS, NSC, and tax-saving FDs for Section 80C benefits.

PPF account holders can nominate one or more persons (including minors) by submitting Form E at the time of opening or anytime during the account tenure. If there are multiple nominees, the account holder specifies the share of each. In case of the account holder death, the nominee receives the balance without going through legal succession. Nomination can be changed using Form F.

If your PPF is with a bank, check the balance through net banking, mobile banking app, or by visiting the branch. SBI PPF balance is available on the YONO app and internet banking. Post office PPF balance can be checked through the India Post mobile app or by visiting the branch. You can also request a passbook update at the branch for a complete transaction history.

Both are government savings schemes with EEE tax status. PPF is for all residents with 7.1% rate and 15-year tenure. Sukanya Samriddhi (SSY) is only for girl children below 10, offers a higher rate of 8.2%, and matures when the girl turns 21. SSY has a Rs 1.5 lakh annual limit like PPF. If you have a daughter, SSY offers better returns for the same tax benefit. Use PPF for your own savings.

Premature closure of PPF is allowed only after 5 years for specific reasons: serious illness of account holder, spouse, or children, or for higher education. The interest rate applicable is reduced by 1% from the regular rate for the entire tenure. For example, if the prevailing rate was 7.1%, you receive interest at 6.1% on premature closure. This penalty makes premature closure expensive.

Yes, you can deposit PPF contributions in up to 12 installments per year (once each month) or as a lump sum. The minimum per deposit is Rs 500 and the total for the year must not exceed Rs 1.5 lakh. Depositing before the 5th of each month ensures interest is calculated from that month. Lump sum deposit before April 5 maximizes annual interest.

PPF is excellent for young investors as the 15+ year tenure aligns well with their long investment horizon. Starting at age 25, a PPF investor gets maturity at 40 and can extend to age 55 or beyond. The power of compounding over 30+ years is substantial. However, young investors should also allocate to equity (SIP, ELSS) for wealth creation since they can absorb short-term market volatility.

PPF accounts have zero maintenance charges at banks and post offices. There is no account opening fee, no annual maintenance fee, and no transaction charges. The only costs are: Rs 50 penalty per year for account revival if minimum contribution is missed, and 1% interest rate reduction for premature closure. PPF transfers between institutions are also free of charge.