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PPF is a government-backed, long-term savings scheme designed for safe, long-term wealth building. It currently pays 7.1% per annum (a rate the government reviews every quarter), has a 15-year lock-in, and accepts between ₹500 and ₹1.5 lakh per financial year. PPF interest and maturity proceeds are tax-exempt under applicable rules. The Section 80C deduction for your contribution applies under the old tax regime, subject to the overall ₹1.5 lakh limit; the default new regime generally does not provide this deduction.
Interest is calculated every month on the lowest balance in your account between the 5th and the last day of the month, then credited once a year on 31 March and compounded annually. A practical tip follows directly from this rule: deposit on or before the 5th of the month to earn interest on that money for the full month.
Invest the maximum ₹1.5 lakh every year for 15 years at 7.1%:
Total invested: ₹22.5 lakh • Maturity value: ≈ ₹40.68 lakh • Tax-free interest earned: ≈ ₹18.18 lakh. Because the entire maturity is exempt, there is no LTCG, no TDS, and no tax to pay on withdrawal.
Assumes the 7.1% rate holds throughout; the rate is reviewed quarterly and may change.
Enter your yearly (or monthly) contribution and the tenure. The calculator projects your maturity amount and total tax-free interest based on the current PPF rate.
Yes. PPF has EEE status — contributions are deductible under Section 80C (old regime), and both the annual interest and the final maturity amount are exempt from tax, with no TDS.
Partial withdrawals are allowed from the 7th year, and a loan against your balance is available between years 3 and 6. Full withdrawal is only at maturity, though premature closure is permitted in specific cases like serious illness or higher education.
PPF is government-backed and its interest is currently tax-exempt under applicable rules, while ELSS is market-linked equity with a statutory lock-in period.
