Calculate your PPF maturity value, total interest earned, and view a detailed year-by-year breakdown. The Public Provident Fund is one of India’s safest long-term savings instruments backed by the Government of India, offering guaranteed returns with full tax exemption under the EEE regime.
Last updated: March 2026
PPF interest is calculated monthly but compounded annually. The key detail every investor must know is that interest is calculated on the lowest balance between the 5th and the last day of each month. This means:
The annual compounding formula used in this calculator is:
Where:
| Variable | Meaning |
|---|---|
| A | Maturity value at the end of the tenure |
| P | Fixed yearly deposit (e.g., ₹1,50,000) |
| r | Annual interest rate (e.g., 7.1% = 0.071) |
| n | Number of years (minimum 15) |
Suppose you invest ₹1,50,000 per year at 7.1% for 15 years:
By maximising your annual contribution to the Section 80C limit of ₹1,50,000, you accumulate over ₹40 lakh in 15 years — with every rupee of interest completely tax-free.
Pro tip: To maximise interest, deposit your entire annual amount as a lump sum before the 5th of April each financial year. This ensures your money earns interest for all 12 months of the year, resulting in a slightly higher maturity value compared to monthly or irregular deposits.
| Feature | Details |
|---|---|
| Current Interest Rate | 7.1% per annum (compounded annually, reviewed quarterly) |
| Lock-in Period | 15 years (extendable in 5-year blocks) |
| Minimum Deposit | ₹500 per financial year |
| Maximum Deposit | ₹1,50,000 per financial year |
| Tax Benefit | EEE (Exempt-Exempt-Exempt) — contribution under 80C, interest tax-free, maturity tax-free |
| Loan Facility | Available from 3rd to 6th financial year (up to 25% of balance at end of 2nd preceding year) |
| Partial Withdrawal | From 7th year onwards (up to 50% of balance at end of 4th preceding year) |
| Where to Open | Post offices, SBI, and most nationalised and private banks |
| Risk Level | Zero — sovereign guarantee by Government of India |
| Nomination | Allowed (one or more nominees can be appointed) |
The Public Provident Fund remains one of the most popular savings schemes in India for good reason. Here are the key advantages that make PPF a cornerstone of financial planning for millions of Indians:
The current PPF interest rate is 7.1% per annum, as of Q1 FY 2026-27. The Government of India reviews the PPF interest rate every quarter along with other small savings scheme rates. The rate is announced by the Ministry of Finance and applies for that particular quarter. Interest on PPF is compounded annually and credited to the account on 31st March each year.
PPF has a mandatory lock-in period of 15 years from the end of the financial year in which the account was opened. After 15 years, you can either withdraw the entire maturity amount or extend the account in blocks of 5 years — with or without fresh contributions. Premature closure is allowed only after 5 years under specific circumstances like serious illness of the account holder, spouse, or children, or for higher education expenses.
PPF offers triple tax exemption (EEE status). Deposits up to ₹1,50,000 per year are eligible for deduction under Section 80C of the Income Tax Act. The interest earned throughout the tenure is completely tax-free — there is no TDS deducted. The maturity amount, including all accumulated interest, is fully exempt from income tax. This makes PPF one of the most tax-efficient long-term instruments available in India.
Partial withdrawals are permitted from the 7th financial year onwards (after completing 6 full financial years from the date of account opening). The maximum you can withdraw is 50% of the balance at the end of the 4th preceding financial year or the balance at the end of the immediately preceding year, whichever is lower. Only one partial withdrawal is allowed per financial year. These withdrawals are completely tax-free.
PPF and FD cater to different needs. PPF offers tax-free returns (EEE status) and a government guarantee, making it ideal for long-term retirement savings. FD interest is fully taxable at your income tax slab rate, which significantly reduces the effective return. For someone in the 30% tax bracket, a bank FD offering 7% effectively yields only about 4.9% post-tax, while PPF at 7.1% gives the full 7.1% tax-free. However, FDs offer much shorter and flexible lock-in periods (7 days to 10 years), making them better for short-term goals or emergency funds.
Non-Resident Indians (NRIs) are not permitted to open new PPF accounts in India. However, if a person who already holds a PPF account becomes an NRI, they can continue the existing account on a non-repatriable basis until its 15-year maturity. After maturity, the account cannot be extended further and must be closed. Interest will be credited at the prevailing PPF rate until maturity. It is advisable for NRIs to inform their bank or post office about the change in residential status.