What is the PPF interest rate now?

7.1% a year, compounded yearly, as notified for the current quarter. The rate is reviewed every quarter and has moved between 7.1% and 8.8% over the past fifteen years.

Is PPF completely tax-free?

Yes, at all three stages: the deposit (up to ₹1.5 lakh a year) qualifies for the ₹1.5 lakh deduction under the old tax regime, the interest is exempt and the maturity amount is exempt. Under the new regime the deduction does not apply, but interest and maturity remain tax-free.

Can I extend PPF after 15 years?

Yes, in blocks of five years, with or without fresh deposits, any number of times. An extended account with deposits keeps earning tax-free interest and allows one withdrawal a year of up to 60% of the balance at the start of the block.

When can I withdraw from PPF?

One partial withdrawal a year from the seventh financial year, up to 50% of the balance at the end of the fourth preceding year or the previous year, whichever is lower. A loan is available from the third to the sixth year. Premature closure after five years is allowed only for specified reasons.

PPF, ELSS or NPS for tax saving?

They do different jobs. PPF is a fixed-rate, government-backed 15-year deposit. An ELSS is an equity fund with a three-year lock-in and market-linked returns. NPS is a retirement account with an extra deduction and a mandatory annuity at exit. Which mix fits depends on your tax regime, horizon and comfort with market movement.

What is the minimum and maximum PPF deposit?

At least ₹500 a year to keep the account active and at most ₹1.5 lakh a year across all your PPF accounts, including a minor's account you operate. Deposits above ₹1.5 lakh earn no interest.

Financial calculatorsPPF Calculator

PPF Calculator

See the tax-free maturity value of a Public Provident Fund account.

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Yearly investment₹1,50,000Interest rate (p.a.)7.1%Time period15 yr

Invested amount: ₹22.5 L
Total interest: ₹18.2 L
Maturity value: ₹40.7 L

Invested amount₹22.5 L 55%
Total interest₹18.2 L 45%

PPF rate is set by the government each quarter (7.1% p.a. at present). Maximum ₹1.5 lakh a year; interest and maturity are tax-free. Deposits assumed at the start of each year.

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How this calculator works

Enter the yearly deposit and the number of years, with the current PPF rate filled in. The calculator compounds the balance yearly, the way the scheme does, and shows how much is your deposits and how much is interest. PPF matures at 15 years and can be extended in five-year blocks.

What is a PPF calculator?

A PPF calculator shows the maturity value of a Public Provident Fund account from a yearly deposit over 15 years or longer at the current notified rate. PPF is government-backed: deposits up to ₹1.5 lakh a year qualify for a tax deduction, and the interest and maturity amount are tax-free.

How is it calculated?

Maturity = A × [((1 + r)^n − 1) / r] × (1 + r)

A is the yearly deposit, assumed at the start of each year
r is the PPF rate (7.1% a year at present, set by the government every quarter)
n is the number of years, 15 at maturity

The scheme credits interest on the lowest balance between the 5th and the last day of each month, so a deposit before 5 April earns for the whole year.

₹1.5 lakh a year for 15 years at 7.1%

Yearly deposit	₹1,50,000
Period	15 years
Rate	7.1% a year
Total deposited	₹22,50,000
Interest earned	₹18,18,209
Maturity value	₹40,68,209

Extended for ten more years with the same deposit, the balance reaches about ₹1.03 crore.

Questions people ask

7.1% a year, compounded yearly, as notified for the current quarter. The rate is reviewed every quarter and has moved between 7.1% and 8.8% over the past fifteen years.
Yes, at all three stages: the deposit (up to ₹1.5 lakh a year) qualifies for the ₹1.5 lakh deduction under the old tax regime, the interest is exempt and the maturity amount is exempt. Under the new regime the deduction does not apply, but interest and maturity remain tax-free.
Yes, in blocks of five years, with or without fresh deposits, any number of times. An extended account with deposits keeps earning tax-free interest and allows one withdrawal a year of up to 60% of the balance at the start of the block.
One partial withdrawal a year from the seventh financial year, up to 50% of the balance at the end of the fourth preceding year or the previous year, whichever is lower. A loan is available from the third to the sixth year. Premature closure after five years is allowed only for specified reasons.
They do different jobs. PPF is a fixed-rate, government-backed 15-year deposit. An ELSS is an equity fund with a three-year lock-in and market-linked returns. NPS is a retirement account with an extra deduction and a mandatory annuity at exit. Which mix fits depends on your tax regime, horizon and comfort with market movement.
At least ₹500 a year to keep the account active and at most ₹1.5 lakh a year across all your PPF accounts, including a minor's account you operate. Deposits above ₹1.5 lakh earn no interest.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Figures are illustrations at an assumed rate, not a forecast. Talk to us to match a plan to your goals.