PPF Investment Guide India - Everything You Need to Know

The Public Provident Fund (PPF) is a government-backed long-term savings scheme offering safety, decent returns, and excellent tax benefits.

Feature	Details

Interest Rate	7.1% per annum (compounded quarterly)
Maturity	15 years (extendable in 5-year blocks)
Min/Max Investment	₹500 - ₹1,50,000/year
Tax Status	EEE (Exempt-Exempt-Exempt)
Risk Level	Zero (Government guaranteed)

Exempt at Investment: Section 80C deduction up to ₹1.5 lakh/year

Exempt on Returns: Interest is completely tax-free

Exempt at Maturity: Entire amount is tax-free

This makes PPF's effective pre-tax return approximately 10% for someone in the 30% tax bracket.

Annual Investment	After 15 Years	After 20 Years	After 25 Years

₹50,000	₹13,56,070	₹21,35,380	₹32,09,032
₹1,00,000	₹27,12,139	₹42,70,760	₹64,18,064
₹1,50,000	₹40,68,209	₹64,06,140	₹96,27,096

Partial withdrawal from 7th year onwards

Limit: 50% of balance at end of 4th preceding year

Loan facility from 3rd to 6th year, up to 25% of balance

After 15 years:

Withdraw entire amount

Extend without contribution (balance earns interest)

Extend with contribution (5-year blocks, up to ₹1.5 lakh/year)

Factor	PPF	FD	SIP (Equity)

Returns	7.1% (tax-free)	6-7% (taxable)	12-15%
Risk	Zero	Very Low	Medium-High
Tax	EEE (fully exempt)	Interest taxable	ELSS only
Liquidity	Low (15yr)	Medium	High
Effective return	~10% pre-tax equivalent	~4.5% post-tax	~11%

Invest before April 5 to maximize interest

Invest maximum ₹1.5 lakh for full 80C benefit

Extend after 15 years if funds not needed

Open for minor children (counts toward your 80C)

Use the EasyCalcFor.me PPF calculator to see your investment grow.

PPF Investment Guide India - 7.1% Interest Rate, Tax Benefits & Rules