PPF Official Rules (2026)
- •Current interest rate: 7.1% per annum, compounded yearly (revised quarterly by govt).
- •Investment limit: ₹500 minimum, ₹1.5 lakh maximum per financial year.
- •Lock-in: 15 years, extendable in blocks of 5 years.
- •Tax status: EEE, meaning contributions, interest, and maturity are all fully tax-free.
The Real Problem This Solves
People treat PPF as a dusty old scheme and underfund it, missing one of the few completely tax-free returns left in India.
Seeing the 15-year maturity figure changes minds fast. This calculator shows what disciplined PPF saving actually builds.
How PPF Compounds Tax-Free
PPF compounds annually. Each yearly deposit earns interest that itself earns interest the next year, and none of it is taxed.
Example: Sneha invests the full ₹1.5 lakh every year at 7.1% for 15 years. She puts in ₹22.5 lakh total, and it matures at about ₹40.68 lakh, completely tax-free. That ₹18 lakh of interest would have been partly taxed in almost any other instrument.
Wondering if that same ₹1.5 lakh a year would do more in equity instead? Read PPF vs SIP, where should your money actually go for the full comparison.
| Yearly Investment | Rate | Tenure | Tax-Free Maturity |
|---|---|---|---|
| ₹1,50,000 | 7.1% | 15 years | ₹40.68 lakh |
| ₹1,00,000 | 7.1% | 15 years | ₹27.12 lakh |
| ₹1,50,000 | 7.1% | 25 years | ₹1.03 crore |
Frequently Asked Questions
Is the PPF maturity amount really tax-free?
Yes. PPF has EEE status: your deposits qualify for Section 80C deduction, the annual interest is tax-free, and the entire maturity amount is tax-free.
Can I withdraw before 15 years?
Partial withdrawals are allowed from the 7th year, with limits. The full balance can only be withdrawn at maturity, though you can take loans against it earlier.
Related Calculators
Saw your tax-free PPF corpus?
Have a daughter? The Sukanya Samriddhi Yojana offers an even higher rate with the same tax-free status. Check it with our SSY Calculator.
Open SSY Calculator →