What is the current PPF interest rate and how is interest calculated?

The current PPF (Public Provident Fund) interest rate is 7.1% per annum, effective since January 2020. The rate is announced quarterly by the Ministry of Finance and has remained unchanged for over 5 years. How interest is calculated: Interest is computed monthly on the minimum balance between the 5th and the last day of each month. This means: ✓ If you deposit before the 5th of a month, that balance earns interest for that month ✗ If you deposit after the 5th, it earns no interest for that month Best strategy: Deposit your entire annual amount on April 1 (start of financial year). This ensures: - The full deposit earns interest for all 12 months of the year - vs depositing on March 31 (year-end) where the deposit earns zero interest for that year - Difference: ₹1,50,000 × 7.1% = ₹10,650 per year — over 15 years this compounds to ₹2.7 lakh additional maturity Interest is credited on 31st March every year. It compounds annually.

What is the EEE tax status of PPF and why does it matter?

PPF has EEE (Exempt-Exempt-Exempt) tax status — the best possible tax treatment for any investment in India: E1 — Exempt on deposit: Contributions up to ₹1,50,000/year are deductible under Section 80C of the Income Tax Act. At the 30% tax slab, depositing ₹1.5L saves ₹45,000 in tax per year (₹6.75L over 15 years). E2 — Exempt on interest: The annual interest earned (currently 7.1%) is completely tax-free — it does not need to be reported in your ITR. Compare this to bank FDs where interest is fully taxable as income. E3 — Exempt on maturity: The entire maturity amount (principal + all accumulated interest) is completely tax-free. No capital gains tax, no wealth tax, no TDS. Effective post-tax yield comparison at 30% slab: PPF 7.1% → effective yield 7.1% (fully tax-free) Bank FD 7.5% → effective yield 5.25% (after 30% tax on interest) This makes PPF significantly better than bank FDs for tax-paying investors despite sometimes offering lower nominal rates. PPF cannot be attached by courts (except IT department for tax recovery) — it's creditor-proof.

When can I withdraw from PPF and what are the rules?

PPF has strict withdrawal rules: Full withdrawal (closure): - Available only at maturity (after 15 years from year of opening) - Amount is completely tax-free - No TDS deducted Partial withdrawal (from Year 7 onwards): - First partial withdrawal available from the 7th financial year - Amount: lower of (50% of balance at end of 4th preceding year) OR (50% of balance at end of preceding year) - Only 1 withdrawal allowed per financial year - Tax-free - No repayment required - Purpose: any — no documentation required Loan against PPF (Years 3-6): - Available from 3rd year to before 6th year - Up to 25% of balance at end of 2nd preceding year - Interest rate: PPF rate + 1% (currently 8.1%) - Must repay in 36 months — if not repaid, interest increases to PPF rate + 6% Premature closure (after 5 years, before 15 years): - Only allowed for specific reasons: life-threatening illness (account holder/spouse/dependent), higher education of account holder or minor child, change of residency status (NRI) - 1% interest penalty deducted for the entire tenure - Form required, supporting documents mandatory

Should I extend my PPF after 15 years? What are the options?

After maturity at 15 years, you have 3 options: Option 1: Close and withdraw Withdraw the full maturity amount tax-free. Best if you need the funds. Option 2: Extend 5 years WITH fresh deposits - Continue depositing up to ₹1,50,000/year - Continue claiming 80C deduction each year - Partial withdrawals allowed (up to 60% over the 5-year block — once per year) - Best option if you don't need the money and are still earning taxable income - On ₹1.5L/year deposits, maturity grows from ~₹40.7L to ~₹66.6L (5yr extension with deposits) Option 3: Extend 5 years WITHOUT fresh deposits - No new deposits — existing balance continues to earn 7.1% interest - Can make 1 withdrawal per year (up to 60% of balance at start of extension period) - Best if you want continued tax-free compounding without the commitment of annual deposits - On ~₹40.7L balance, grows to ~₹57.3L after 5 more years How to extend: Submit an application to your bank/post office within 1 year of maturity date (before Form 2 deadline). If you fail to submit, the account continues earning interest but no new deposits can be made — effectively treated as extension without deposits. Key rule: You can continue extending indefinitely in 5-year blocks — there is no maximum extension period.

What is the maximum deposit in PPF and can I open multiple accounts?

Maximum deposit: ₹1,50,000 per financial year (April 1 to March 31). This limit applies ACROSS ALL PPF ACCOUNTS including: - Your own PPF account - A minor child's PPF account opened in your name as guardian So if you deposit ₹1L in your own PPF and ₹50K in your minor child's account — you've hit the ₹1.5L limit and can claim only ₹1L (your own account) under 80C. Multiple accounts: ✗ You CANNOT open multiple PPF accounts in your own name — only one account allowed per individual ✗ NRIs cannot open new PPF accounts — if an existing account holder becomes NRI, the account continues but cannot be extended after maturity ✓ You can open a PPF account for your minor child (separate account, combined limit with your account) ✓ HUFs cannot open PPF accounts (rule changed in 2005) Amount below minimum: If you don't deposit at least ₹500 in a financial year, the account becomes inactive/dormant. A penalty of ₹50/year is charged to reactivate it. Deposit in instalments: You can deposit in up to 12 instalments per year or in a lump sum. Each instalment must be at least ₹500. You can deposit any amount above ₹500 — it doesn't have to be in round numbers.

PPF MATURITY CALCULATOR — PUBLIC PROVIDENT FUND INDIA

Calculate your PPF (Public Provident Fund) maturity value at the current interest rate of 7.1% p.a. Enter your annual deposit (₹500 to ₹1,50,000), tenure (15 years minimum, extendable in 5-year blocks), and deposit timing (April 1 is optimal — earns full year interest vs March 31 which earns nothing...

PPF CALCULATOR

Annual Deposit (₹)Min ₹500 · Max ₹1,50,000

Monthly equivalent: ₹12,500/month · 80C limit: ₹1,50,000

Tenure (Years)Min 15 · extendable by 5yr blocks

Deposit Timing

Depositing on April 1 vs March 31 makes a difference of ₹2.70 L over 15 years

Your Tax Slab (for 80C saving)

MATURITY VALUE

₹40.68 L

1.81× wealth gain

80C TAX SAVING

₹45,000/yr

Total: ₹6.75 L

LIVE DIAGRAM

MATURITY VALUE (TAX-FREE)

₹40.68 L

₹22.50 L deposited · ₹18.18 L interest · 1.81× wealth gain

MATURITY COMPOSITION

Principal invested₹22.50 L (55%)

Interest earned (tax-free)₹18.18 L (45%)

BALANCE GROWTH — YEAR BY YEAR

Y15

\u2714 EEE Tax Status — Triple Exempt

Deposits: 80C deductible \u00b7 Interest: fully tax-free \u00b7 Maturity: completely tax-free

Annual compounding \u00b7 Interest credited 31 March \u00b7 Current rate 7.1% p.a.

Created with❤️byeaglecalculator.com

EXTENSION OPTIONS (AFTER 15 YEARS)

MATURITY AT 15 YEARS

₹40.68 L

Close and withdraw — fully tax-free

EXTEND 5YR WITH DEPOSITS

₹66.58 L

Continue depositing up to ₹1.5L/yr · additional 80C benefit

EXTEND 5YR NO DEPOSITS

₹57.33 L

Let existing balance compound — no new deposits needed

Extension must be applied within 1 year of maturity. Can be extended indefinitely in 5-year blocks. During extension without deposits, partial withdrawals are allowed annually (up to 60% of balance at the start of the extension period).

PPF KEY FACTS — FY 2025-26

Feature	Details
Current Interest Rate	7.1% p.a. — announced quarterly by Ministry of Finance (unchanged since Jan 2020)
Compounding	Annual compounding — interest calculated on minimum balance between 5th and last day of each month
Interest Credit	Credited on 31st March every year
Minimum Deposit	₹500 per financial year (account becomes dormant if not maintained)
Maximum Deposit	₹1,50,000 per financial year (Section 80C limit — individual account only)
Lock-in Period	15 years from end of financial year of account opening
Tax Status	EEE — Exempt on deposit (80C), Exempt on interest, Exempt on maturity
Loan Facility	From 3rd year to 6th year: up to 25% of balance at end of 2nd preceding year
Partial Withdrawal	From 7th year: lower of 50% of balance at end of 4th preceding year or 50% of preceding year balance
Premature Closure	After 5 years — only on specific grounds (medical, education, change of residency). 1% interest penalty applies
Extension	5-year blocks after maturity — with or without fresh deposits. Apply within 1 year of maturity
Nomination	Mandatory — can nominate up to 4 people. Cannot be attached or seized by court orders
Account Type	Individual only (no joint accounts). Minor PPF account through guardian — combined limit ₹1.5L
Where to Open	Post offices, SBI, nationalized banks, and select private banks (HDFC, ICICI, Axis, Kotak)

PARTIAL WITHDRAWAL LIMITS

Withdrawal Year	Balance (Preceding Year-End)	Max Withdrawal Allowed
Year 7	₹11,52,076	₹2,58,489
Year 8	₹13,94,524	₹3,57,167
Year 9	₹16,54,185	₹4,62,851
Year 10	₹19,32,282	₹5,76,038
Year 11	₹22,30,124	₹6,97,262
Year 12	₹25,49,113	₹8,27,093
Year 13	₹28,90,750	₹9,66,141
Year 14	₹32,56,643	₹11,15,062

Only 1 withdrawal per financial year allowed. Withdrawal is tax-free. No repayment required.

YEAR-BY-YEAR SCHEDULE

HOW TO USE

1
Enter your annual deposit amount — minimum ₹500 and maximum ₹1,50,000 per financial year. Use the quick-select buttons for the most common amounts. The monthly equivalent and 80C deduction limit are shown below the input.
2
Set the tenure — minimum 15 years (the PPF lock-in period). You can extend beyond 15 years in 5-year blocks. The calculator shows maturity values at 15, 20, 25, and 30 years for quick comparison.
3
Choose deposit timing: April 1 (start of financial year) earns interest for the full year — this is the optimal strategy. March 31 (end of year) earns no interest for that year. The calculator shows exactly how much you gain by depositing on April 1 vs March 31.
4
Select your income tax slab (0%, 5%, 10%, 20%, or 30%) to see your Section 80C tax saving on the PPF deposit. The annual and total tax savings are displayed prominently.
5
Read the results: maturity value, wealth gain ratio, year-by-year schedule (toggle to show), extension options (with and without fresh deposits for 5 more years), and the partial withdrawal limits from year 7 onwards.

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PPF interest rate 7.1% p.a. · Ministry of Finance, Government of India · EEE tax status · Section 80C deduction up to ₹1,50,000 · For informational purposes only · Consult a financial advisor before investing