The Public Provident Fund (PPF) is India's most popular long-term saving scheme backed by the Government. It offers guaranteed, tax-free returns. Our PPF Calculator helps you foresee your maturity wealth down to the last rupee.
Why is PPF considered the best tax-saving instrument?
PPF follows the "EEE" (Exempt-Exempt-Exempt) tax model. This means:
- The money you invest is exempt from tax under Section 80C.
- The interest you earn every year is exempt from tax.
- The final maturity amount you withdraw is completely exempt from tax.
Frequently Asked Questions
The standard lock-in period for a PPF account is 15 years. This period starts from the end of the financial year in which the initial deposit was made.
Yes, you can extend your PPF account indefinitely in blocks of 5 years. You have the option to extend it with or without making further contributions.
The current PPF interest rate is usually around 7.1% per annum, compounded annually. The Finance Ministry revises this rate every quarter.
Interest is calculated monthly on the lowest balance between the close of the 5th day and the end of the month. Therefore, it is always recommended to deposit your PPF contribution before the 5th of the month. The interest is credited to the account at the end of the financial year.
No, an individual is legally allowed to have only one PPF account under their name. You can, however, open another account as a guardian for a minor child, but the combined maximum deposit limit remains ₹1.5 Lakhs per year.
If you fail to deposit the minimum amount of ₹500 in a financial year, the account becomes inactive. To revive it, you must pay a penalty of ₹50 per inactive year along with the minimum ₹500 for each missed year.
Partial withdrawals are permitted from the 7th financial year onwards. You can also take a loan against your PPF balance between the 3rd and 6th financial year.