💼 Indian Government Savings Scheme

Public Provident Fund (PPF)

Estimate your tax-free retirement corpus and annual compound interest growth easily.

PPF Parameters

₹1,50,000
₹
7.1%
%
15 Yr
Years

PPF Summary

Total Principal Invested: ₹22,50,000
Est. Interest Earned: ₹18,18,208
Total Maturity Wealth: ₹40,68,208

Year-by-Year Growth Table

Track opening balances, annual deposits, and compounding interest accumulations year-on-year.

Year No Opening Balance Annual Deposit Interest Earned Closing Balance

What is a Public Provident Fund (PPF)?

The **Public Provident Fund (PPF)** is one of the most reliable and popular small savings schemes backed entirely by the Government of India. Introduced by the National Savings Institute in 1968, PPF was established to mobilize small savings from individuals and encourage self-employed and unorganized sector workers to build long-term tax-exempt retirement corpuses.

PPF accounts possess the prestigious **EEE (Exempt-Exempt-Exempt) Tax Status** under Section 80C of the Income Tax Act. This means:

1. **Exempt Deposit**: Contributions made up to ₹1,50,000 per financial year are fully tax-deductible.
2. **Exempt Interest**: The annual compounded interest earned is entirely tax-free.
3. **Exempt Maturity**: The final lump-sum withdrawal amount at the end of the 15-year tenure is completely exempt from income tax.

PPF Rules, Extensions & Interest Computations

• **Tenure & Extensions**: A standard PPF account has a rigid lock-in period of **15 years**. However, upon maturity, the account holder has the flexibility to extend the tenure indefinitely in **blocks of 5 years** (with or without making new deposits).
• **Deposit Limits**: The scheme mandates a minimum annual deposit of ₹500 and a maximum cap of ₹1,50,000 per fiscal year. Deposits can be made in a single lumpsum or in multiple monthly installments.
• **Interest Calculation**: PPF interest is calculated monthly based on the lowest balance in your account between the **5th and last day of each calendar month**. Hence, depositing before the 5th of a month maximizes your interest yield. The interest is credited and compounded annually on March 31st.

PPF Calculator FAQs

Can I take a loan against my PPF balance?
Yes! Account holders can avail of loans against their accumulated PPF balance between the **3rd and 6th financial year** from the account opening date. The maximum loan amount is capped at 25% of the closing balance at the end of the second preceding financial year, and interest on the loan is charged at just 1% above the prevailing PPF interest rate.
Are NRI (Non-Resident Indians) allowed to open PPF accounts?
NRIs are **not permitted** to open fresh PPF accounts in India. However, if a resident Indian who opened a PPF account subsequently becomes an NRI during the 15-year tenure, they are allowed to continue contributing and maintaining the account until its maturity on a non-repatriation basis.
What is the premature withdrawal rule for PPF?
Partial, tax-free withdrawals are permitted from the **7th financial year** onwards. The maximum partial withdrawal limit is capped at the lower of: 50% of the closing balance at the end of the preceding fiscal year, OR 50% of the closing balance at the end of the fourth preceding fiscal year.