PPF Calculator

What is the Public Provident Fund (PPF)?

The Public Provident Fund (PPF) is a popular long-term savings scheme in India backed by the Government of India. It offers safety, attractive interest rates, and significant tax benefits, making it a cornerstone of retirement planning for many Indians.

Key Rules of PPF

• Tenure: The minimum lock-in period is 15 years. You can extend it in blocks of 5 years thereafter.
• Investment Limits: You must invest a minimum of ₹500 per year, up to a maximum of ₹1,50,000 per financial year.
• Tax Benefit (EEE): PPF falls under the 'Exempt-Exempt-Exempt' category. The amount invested (up to ₹1.5 Lakh) is exempt under Section 80C. The interest earned is exempt, and the final maturity amount is completely tax-free.
• Interest Calculation: Interest is calculated monthly on the minimum balance between the 5th and the end of the month, but it is credited to the account annually at the end of the financial year. The current assumed rate is ~7.1%.

How to Maximize PPF Returns

To get the absolute maximum return from your PPF account, you should try to deposit your yearly investment amount (e.g., ₹1,50,000) between the 1st and the 5th of April every year. Because interest is calculated on the minimum balance between the 5th and the end of the month, depositing early ensures your deposit earns interest for the entire 12 months of that financial year.