PPF Maturity Calculator
Calculate your Public Provident Fund returns with precision
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Public Provident Fund (PPF) – Complete Guide
The Public Provident Fund (PPF) is one of India’s most popular long-term savings schemes, offering tax-free returns with government backing. Learn how PPF works and its benefits for long-term wealth creation.
What is PPF?
PPF is a government-backed savings scheme that helps you build wealth with:
- 7.1% interest rate (current rate as of 2024)
- 15-year lock-in period (extendable in 5-year blocks)
- Tax benefits under Section 80C (up to ₹1.5 lakh/year)
- EEE (Exempt-Exempt-Exempt) status – Tax-free deposits, interest, and withdrawals
Key Benefits of PPF
1. Tax-Free Returns (EEE Status)
- Investment deduction under Section 80C (up to ₹1.5 lakh/year)
- Interest earned is tax-free (unlike FD interest)
- Maturity amount is completely tax-free
2. Safe & Government-Backed
Unlike stocks or mutual funds, PPF has zero market risk as it’s backed by the Government of India.
3. Long-Term Wealth Creation
The 15-year tenure (extendable) helps in compounding wealth systematically.
4. Loan & Withdrawal Options
- Take a loan between 3rd-6th year
- Partial withdrawals allowed after 7 years
PPF Interest Calculation
PPF uses annual compounding with this formula:
A = P × (1 + r/100)n
Where:
- A = Maturity Amount
- P = Annual Investment
- r = Interest Rate (7.1%)
- n = Tenure in Years
Example Investment Scenarios
| Yearly Investment | Total Investment (15 Yrs) | Maturity Amount | Interest Earned |
|---|---|---|---|
| ₹1.5 lakh | ₹22.5 lakh | ₹40.68 lakh | ₹18.18 lakh |
| ₹12,500/month (₹1.5L/yr) | ₹22.5 lakh | ₹40.68 lakh | ₹18.18 lakh |
PPF vs Other Investments
| Feature | PPF | Fixed Deposit (FD) | Mutual Funds |
|---|---|---|---|
| Returns | 7.1% (Guaranteed) | 5-7% (Taxable) | 10-15% (Market-Linked) |
| Taxation | EEE (Fully Tax-Free) | Taxable as per Income Slab | LTCG Tax (10% over ₹1L) |
| Risk | Zero Risk | Low Risk | High Risk |
| Lock-in Period | 15 Years | 1-10 Years | 3+ Years (ELSS) |
How to Open a PPF Account?
- Visit any Bank/Post Office (SBI, HDFC, ICICI, etc.)
- Submit Form 1 + KYC Documents (Aadhaar, PAN, Address Proof)
- Deposit Minimum ₹500 to activate account
- Start Investing (Yearly deposits can be made online)
Frequently Asked Questions (FAQ)
Partial withdrawals are allowed after 7 years. Full withdrawal is only permitted at maturity (15 years).
You can either withdraw the full amount or extend in blocks of 5 years with continued tax benefits.
Yes, for tax-saving and long-term goals. PPF offers higher effective returns due to tax-free status, while FD interest is taxable.
Final Verdict: Should You Invest in PPF?
👍 Best for: Long-term investors seeking safe, tax-free returns (retirement, child education).
👎 Avoid if: You need liquidity before 7 years or want higher returns (consider mutual funds).
Start Your PPF Investment Today!
Open a PPF account at any major bank and begin your journey toward tax-free wealth creation.