PPF Calculator (Public Provident Fund)

What is PPF (Public Provident Fund)?

The Public Provident Fund (PPF) is a long-term savings-cum-investment scheme backed by the Government of India. It offers safety, attractive interest rates (compared to many fixed-income options), and significant tax benefits, making it a popular choice for retirement planning and achieving other long-term financial goals.

Key Features of PPF

• Eligibility: Any resident Indian individual can open a PPF account. NRIs are not eligible, but can continue existing accounts until maturity. One account per individual.
• Investment Limit: Minimum annual deposit is ₹500, maximum is ₹1,50,000 in a financial year. Deposits can be made in lump sum or up to 12 installments.
• Tenure: 15 years (excluding the year of account opening). Can be extended in blocks of 5 years after maturity.
• Interest Rate: Compounded annually. The rate is notified by the government quarterly.
• Loan Facility: Loan can be availed against the PPF balance between the 3rd and 6th financial year.
• Withdrawal: Partial withdrawal is permissible from the 7th financial year onwards, subject to conditions.
• Tax Benefits: PPF enjoys EEE (Exempt-Exempt-Exempt) status. Contributions up to ₹1.5 Lakh qualify for deduction under Section 80C. The interest earned and the maturity amount are completely tax-free.
• Safety: Backed by the Government of India, offering high safety for the principal and interest.

Disclaimer: This calculator provides estimates based on the rules and interest rate entered. The actual interest rate is subject to quarterly government revisions. The calculation assumes annual investment is made at the beginning of each financial year. Consult official Post Office/Bank sources or a financial advisor for the latest information and personalized advice.