Min: ₹500, Max: ₹1,50,000 per year
Current PPF interest rate: 7.1% p.a.
15-year maturity, then extensions in 5-year blocks (15, 20, 25 …)

What is PPF?

The Public Provident Fund is a government-backed savings scheme that combines three things savers value: a sovereign guarantee, a respectable interest rate, and complete tax freedom. Deposits qualify for the 80C deduction in the old tax regime, and both the interest and the maturity amount are fully tax-exempt. The current rate is 7.1% per annum, compounded annually, for Q2 FY 2026-27 (July to September 2026). The rate has stayed there since April 2020, and the government reviews it every quarter.

The Rules That Apply

A PPF account runs on a 15-year lifecycle, and you can extend it in 5-year blocks after that, with or without fresh deposits. You can deposit anywhere between ₹500 and ₹1.5 lakh per financial year. Interest is calculated on the lowest balance between the 5th and the end of each month, so deposits made before the 5th earn for that month. Partial withdrawals are allowed from the 7th year, and you can take a loan against the balance between the 3rd and 6th years.

What the Numbers Look Like

Suppose you deposit ₹1.5 lakh at the start of every year. At 7.1%, your account grows to roughly ₹40.7 lakh in 15 years, from about ₹22.5 lakh deposited. Every rupee of that is tax-free. Extend the account to 20 years and it crosses ₹66 lakh. Since the rate resets quarterly, your actual maturity will vary with future announcements.

How to Get the Most From Your PPF Account

A few habits noticeably improve the outcome. Deposit your ₹1.5 lakh between 1 and 5 April, so the whole amount earns interest for the full year; if you deposit monthly, pay before the 5th. Never let the account lapse: the ₹500 yearly minimum keeps it regular, and although a lapsed account can be revived with a small penalty, you lose loan and withdrawal privileges in the meantime. If you need money in the early years, the loan window between years 3 and 6 offers up to 25% of your balance at just 1% above the PPF rate, which is often the cheapest loan available to you. And before year 15 ends, decide about the extension: continuing with fresh deposits needs Form H within one year of maturity.

Who Should Choose PPF?

If you are in the old tax regime, PPF gives the triple benefit of a deduction on the way in, tax-free growth, and a tax-free maturity. If you are in the new regime, you lose the deduction but keep the tax-free compounding, and that still makes PPF one of the highest post-tax guaranteed returns in India. A 7.1% tax-free yield beats a fixed deposit paying around 10% before tax for someone in the 30% bracket. For a daughter under 10, Sukanya Samriddhi currently pays a higher 8.2% with the same tax treatment. For shorter horizons, compare NSC and fixed deposits.

FAQs about PPF Calculator

PPF pays 7.1% per annum, compounded annually, for the July–September 2026 quarter (Q2 FY 2026-27). The rate has been unchanged since April 2020 but is reviewed by the government every quarter.
Interest for each month accrues on the lowest balance between the 5th and the last day, credited once a year. Depositing before the 5th of the month — best of all, a lump sum in early April — maximises interest.
Yes — PPF has EEE status: deposits qualify for the 80C deduction in the old tax regime, and interest and the maturity amount are exempt from tax in both regimes.
You can withdraw everything tax-free, or extend in 5-year blocks — either with fresh deposits (keeping 80C benefits) or without, letting the balance keep compounding at the prevailing rate.
Yes for most savers: you lose the 80C deduction but keep tax-free interest and maturity. A 7.1% tax-free return equals roughly a 10%+ pre-tax FD for someone in the 30% bracket — hard to beat among guaranteed options.
Between the 3rd and 6th financial years you can borrow up to 25% of the balance two years prior, at only 1% above the PPF rate, repayable within 36 months. From year 7, partial withdrawals replace the loan facility.