PPF Calculator
Calculate your Public Provident Fund maturity value
PPF is a government-backed savings scheme offering tax-free returns at 7.1% p.a. with a 15-year lock-in. One of the safest long-term investments in India.
What is PPF?
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It offers a combination of safety, tax benefits, and decent returns that few other instruments can match.
Key features: 7.1% interest (reviewed quarterly), 15-year lock-in (extendable in 5-year blocks), tax-free returns (EEE status — exempt at investment, accumulation, and withdrawal), and maximum ₹1.5 lakh/year deposit limit.
PPF Tax Benefits
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — one of the very few instruments in India with this triple exemption:
- Investment: Deduction up to ₹1.5 lakh under Section 80C
- Interest: Interest earned is completely tax-free
- Maturity: The entire maturity amount is tax-free
Frequently Asked Questions
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the 7th year onwards (up to 50% of the balance at the end of the 4th year). Premature closure is only permitted after 5 years for specific reasons like medical emergencies or higher education.
What happens after 15 years?
You can withdraw the full amount tax-free, or extend in blocks of 5 years. You can extend with or without fresh contributions. Many investors extend to maximize the compounding benefit.
PPF vs FD — which is better?
PPF offers tax-free returns at 7.1%, while FD interest is fully taxable. For someone in the 30% tax bracket, a 7% FD effectively yields only ~4.9% after tax. PPF wins for long-term savings, but FDs offer more liquidity.