PPF Investment Details
Max ₹1,50,000/year · Eligible for 80C deduction
Current rate: 7.1% p.a. (Q1 FY 2026-27, set by Govt quarterly)
Results update automatically as you type
Maturity Value
100% tax-free
₹0
Total Invested₹0
Total Interest Earned₹0
Wealth Gain0×
Tax Saved (80C @ 30%)₹0
Year-by-Year PPF Balance
| Year | Annual Investment | Interest Earned | Closing Balance |
|---|
How is PPF Interest Calculated?
PPF interest is calculated on the minimum balance between the 5th and last day of each month. To maximize interest, always invest before the 5th of April every year.
PPF Maturity = Σ [A × ((1 + r)^n − 1) / r × (1 + r)]
A = Annual investment
r = Annual interest rate / 100
n = Remaining years for each installment
Interest is compounded annually. Credited on March 31 every year.
PPF vs FD vs ELSS
PPF offers 7.1% tax-free, making it equivalent to ~10% pre-tax return for a 30% tax bracket investor. FDs offer ~7% but interest is fully taxable. ELSS (equity) targets 12–15% but carries market risk. PPF is ideal for risk-free, tax-free long-term wealth building.
Frequently Asked Questions
What is the current PPF interest rate? ⌄
7.1% per annum for Q1 FY 2026-27. The rate is set by the Government of India quarterly. It has remained at 7.1% since April 2020.
Can I invest more than ₹1.5 lakh in PPF? ⌄
No. The maximum annual deposit in a PPF account is ₹1,50,000 per year. Any amount above this is returned without interest. The minimum is ₹500/year to keep the account active.
Can I withdraw from PPF before 15 years? ⌄
Partial withdrawals are allowed from Year 7 onwards — up to 50% of the balance at the end of Year 4 or the preceding year, whichever is lower. Full premature closure is only allowed after 5 years for specific reasons like medical emergency or education.
Is PPF interest tax-free? ⌄
Yes. PPF falls under the EEE (Exempt-Exempt-Exempt) category: investment is deductible under 80C, interest earned is tax-free, and maturity proceeds are also fully tax-free. It is one of the very few completely tax-free investment instruments in India.