PPF Calculator

The Public Provident Fund (PPF) is a long-term retirement-savings scheme launched in 1968. Any Indian resident (including a minor through a guardian) can open one account at a post office or designated bank, deposit ₹500 to ₹1.5 lakh per financial year for 15 years, and the corpus matures tax-free. Backed by the Government of India.

The rate for Q1 FY 2026-27 (April-June 2026) is 7.10% per annum, compounded annually. PPF has held 7.10% for the last 8 quarters. Rates are reviewed quarterly by the Ministry of Finance and apply to deposits made in that quarter; once credited, the corpus compounds at whatever rate is in effect each year.

Minimum ₹500 per financial year to keep the account active; maximum ₹1.5 lakh per financial year (shared with the §80C limit in the old regime — total of all §80C investments capped at ₹1.5L). Deposits can be made in lump sum or in any number of installments (max 12 per year). Deposits made before the 5th of a month earn interest for that month; later deposits skip the month.

Hard lock for 15 years from the end of the financial year of account opening (so an account opened on 1 May 2026 matures at end of FY 2041-42, i.e. 31 March 2042 — about 15 years and 11 months in calendar terms). At maturity you can withdraw the full corpus, OR extend the account in 5-year blocks with or without further contributions.

Partial withdrawal: allowed once per year from year 7 onwards (between the end of year 5 and end of year 6 — the 7th financial year). Max withdrawal is 50% of the balance at the end of year 4, or 50% of the balance at end of preceding year, whichever is lower. Loan against PPF: allowed from year 3 to year 6 at PPF rate + 1%. Premature closure: allowed from year 5 only for serious illness, higher education, or change of residency status (NRI).

Fully Exempt-Exempt-Exempt (EEE) — across both old and new regimes for the interest and maturity portions. In the old regime, deposits qualify under §80C up to ₹1.5 lakh; interest accrues tax-free; maturity is tax-free. In the new regime, deposits don't get §80C deduction, but interest and maturity remain tax-free. This makes PPF one of the most tax-efficient instruments available to Indian retail savers.

Three options: (1) Withdraw the full corpus and close. (2) Extend without contribution — the account keeps earning interest at the prevailing rate; partial withdrawal once a year is allowed. (3) Extend with contribution in 5-year blocks — submit Form H within 1 year of maturity; deposits continue and qualify for §80C; partial withdrawal up to 60% of the year-15 balance is allowed across the 5-year block. There's no upper cap on the number of extensions.

NRIs cannot open a new PPF account. If you became NRI after opening, you can continue contributing till maturity (no extension allowed once you become NRI). The interest rate stays the same as for residents. Account becomes inactive on maturity — withdraw, don't extend.

PPF: guaranteed 7.10%, 15-year lock-in, EEE tax. SSY: guaranteed 8.20%, but only for a girl child under 10, matures at her age 21. ELSS: market-linked (historical 10–14%), 3-year rolling lock-in, EE-T (LTCG of 12.5% above ₹1.25L/yr). Most planners suggest layering: SSY first if you have a daughter (highest guaranteed rate); PPF for the certainty floor; ELSS for the equity exposure within §80C. All three together let you max the ₹1.5L cap across risk profiles.

One per individual (across post office and banks combined). You cannot operate two PPF accounts. A spouse can open their own — and you can open a PPF account in your minor child's name as guardian, but the ₹1.5L deposit limit applies in aggregate across your own and your minor child's accounts (i.e., your annual contribution to all accounts you operate cannot exceed ₹1.5 lakh).

Interest is calculated on the lowest balance between the 5th and the last day of each month, and credited annually at the end of each financial year (31 March). To maximise interest, make deposits before the 5th of any month — ideally a single lump-sum deposit before 5 April for the full FY.