About PPF
The Public Provident Fund is a government-backed savings scheme with a 15-year lock-in. Interest is compounded yearly and the rate is set by the government every quarter. It has been 7.1% p.a. for a long time — check the latest rate before investing.
Key PPF rules
- Minimum deposit ₹500 and maximum ₹1,50,000 per financial year.
- Deposits qualify for deduction under section 80C (old tax regime).
- Interest and maturity amount are completely tax-free (EEE status).
- After 15 years you can extend the account in blocks of 5 years, with or without fresh deposits.
- Partial withdrawals are allowed from the 7th financial year.
Tip: deposit before the 5th of April
PPF interest is calculated on the lowest balance between the 5th and the end of each month. Depositing your yearly amount before 5 April earns interest for the full year. This calculator assumes that.