PPF Calculator — Public Provident Fund Maturity & Interest

📜 Official PPF rate source & annual update note

PPF interest (currently 7.1% p.a., compounded annually) is set quarterly by the Ministry of Finance under the Public Provident Fund Scheme, 2019 — see National Savings Institute (nsiindia.gov.in) and Department of Economic Affairs notifications. We re-verify the rate each quarter and after every Budget. The 15-year tenure, ₹1.5 lakh annual cap, and EEE tax status follow the scheme rules. Last verified: June 2026.

What is PPF and how does the calculation work?

The Public Provident Fund (PPF) is a government-backed long-term savings scheme launched in 1968, administered under the Public Provident Fund Scheme 2019. It combines guaranteed returns, the highest safety grade (sovereign guarantee), and complete tax exemption — making it the cornerstone of conservative retirement planning in India. Continue your calculation with the EPF Calculator, or check the NPS Calculator.

Interest compounds annually at the government-notified rate (currently 7.1%). The formula applied each year: Balance = (Previous balance + Yearly deposit) × (1 + rate). Because deposits earn interest for the remaining tenure, early-year deposits contribute disproportionately to the final corpus.

What do different PPF deposits grow to?

At the maximum ₹1.5 lakh/year, a PPF account held for 30 years (15 + three 5-year extensions) crosses ₹1.5 crore — entirely tax-free.

How does PPF compare with other 80C options?

Who should use PPF?

Self-employed professionals and business owners — PPF is the closest substitute for EPF, which only salaried employees get. Conservative investors — guaranteed returns with zero default risk. Parents — a PPF account opened for a minor builds an 18-year corpus for education. High earners in the old tax regime — the ₹1.5 lakh 80C deduction at the 30% slab saves ₹46,800 in tax annually on top of the tax-free returns.

Note: under the new tax regime (default from FY 2023-24), the 80C deduction is not available — but PPF interest and maturity remain tax-free in both regimes, keeping it attractive.

What are the PPF account rules you must know?

Opening: any Indian resident adult can open one PPF account (plus one as guardian per minor child) at any bank or post office — NRIs cannot open new accounts but can continue existing ones to maturity without extension. Deposits: minimum ₹500/year keeps the account active; missing it makes the account dormant, revivable with ₹50/year penalty plus arrears. Nomination: strongly recommended at opening — the nominee receives the balance tax-free without succession formalities.

How is monthly PPF interest actually computed?

Interest accrues on the lowest balance between the 5th and the last day of each month, credited once on 31 March. Practical consequence: a deposit on the 6th earns nothing that month. Salaried savers using monthly instalments should automate transfers for the 1st–4th; lump-sum savers should deposit before 5 April to capture the full year.

What loans can you take against PPF?

Between years 3 and 6, you can borrow up to 25% of the balance at the end of the second preceding year, at just 1% above the PPF rate, repayable in 36 months. From year 7, the loan facility closes and the partial-withdrawal facility opens instead. This makes PPF a quiet emergency backstop in its early years.

PPF for minors and family planning

A guardian can open a PPF account for each minor child. The combined deposit across the guardian’s own and minor accounts must stay within ₹1.5 lakh/year for the 80C limit, but the strategy still works powerfully: an account opened at birth matures when the child turns 15, and with one extension funds college at 20 — entirely tax-free. Grandparents cannot open accounts for grandchildren unless they are legal guardians.

PPF interest rate history: how has 7.1% evolved?

The rate is benchmarked to 10-year G-sec yields plus a 25 bps spread (Shyamala Gopinath committee formula) and reviewed quarterly. The lesson from history: rates drift down as the economy matures, so locking long tenures at decent rates — and starting early — beats waiting for rate peaks.

Step-by-step: how to open and operate a PPF account

Online (fastest): log in to your bank’s netbanking → Deposits/Investments → Open PPF → e-KYC with Aadhaar+PAN → fund instantly. SBI, HDFC, ICICI, and most major banks complete this in minutes. Post office: Form 1 with KYC documents at any branch. Operating tips: set a standing instruction for the 1st of each month (or 1 April annually); update nomination immediately; download the yearly statement for 80C proof; and diarise the 15-year maturity date with the Form H extension decision 6 months ahead. Transfers between bank and post office are allowed and preserve the original maturity date.

Is PPF still worth it in 2026?

The case against: 7.1% trails equity by 4–6% annually, the 15-year lock is long, and new-regime taxpayers lose the deposit deduction. The case for: it remains India’s only instrument combining sovereign guarantee, complete tax exemption, and creditor protection — PPF balances cannot be attached by court decree for debt recovery, a shield no FD or mutual fund offers. For business owners with liability exposure, doctors, and anyone whose plan needs an untouchable floor, PPF is less an investment choice than an insurance policy on the rest of the portfolio. The optimal modern dose: enough to anchor 20–30% of long-term savings, not the whole plan.

Frequently asked questions

What is the current PPF interest rate?

The PPF interest rate for Q1 FY 2025-26 is 7.1% per annum, compounded annually. The government reviews and notifies the rate every quarter. Interest is calculated on the lowest balance between the 5th and last day of each month.

What is the minimum and maximum PPF deposit?

Minimum ₹500 per financial year to keep the account active; maximum ₹1.5 lakh per financial year. Deposits above ₹1.5 lakh earn no interest and no 80C benefit. You can deposit in lump sum or up to 12 instalments.

Is PPF maturity amount taxable?

No. PPF has EEE (Exempt-Exempt-Exempt) status: the deposit qualifies for Section 80C deduction, the interest earned is tax-free, and the maturity amount is fully exempt. It is one of the few completely tax-free instruments in India.

Can I withdraw from PPF before 15 years?

Partial withdrawals are allowed from year 7 (up to 50% of the balance at the end of year 4 or the preceding year, whichever is lower). Premature closure is allowed after 5 years only for medical emergencies or higher education, with a 1% interest penalty.

What happens after the 15-year PPF maturity?

Three options: withdraw the full amount tax-free; extend 5 years with fresh deposits (submit Form H); or extend 5 years without deposits — the balance keeps earning interest. Extensions can be repeated indefinitely in 5-year blocks.

When should I deposit in PPF for maximum interest?

Deposit before the 5th of each month — interest is calculated on the lowest balance between the 5th and month-end. For lump sums, deposit before 5 April to earn interest for the entire financial year.

Related calculators

📋 Financial disclaimer: This calculator provides estimates based on published rates and rules and is not investment, tax, or legal advice. Rates change by government/regulator notification and outcomes depend on your circumstances — consult a SEBI-registered advisor or chartered accountant for personal decisions. See methodology.

Sources & References

• NSI — PPF Scheme 2019 & Rate Notifications — Current rate 7.1% p.a., compounded annually; ₹1.5L annual cap; 15-year tenure
• DEA — Small Savings Rate Notification — Quarterly rate-revision authority under Ministry of Finance