PPF Calculator
Calculate your Public Provident Fund (PPF) maturity amount. A tax-free, safe investment backed by the Government of India.
PPF Investment Details
Current PPF Rate is approx 7.1%
Maturity Details
Maturity Value
₹0
Why PPF is a Must-Have Investment
The Public Provident Fund (PPF) is one of the most preferred long-term investment tools in India due to its safety and unbeatable tax efficiency.
Key Features:
- Guaranteed Returns: Interest rates are set by the government every quarter. Unlike mutual funds, your capital is never at risk.
- Tax Saving Powerhouse: Investment up to ₹1.5 Lakh per year reduces your taxable income under Section 80C.
- Compounding Magic: Since it is a 15-year scheme, the power of compounding works wonders. The interest is calculated on the lowest balance between the 5th and end of the month—so deposit before the 5th!
Extension Rules
Once the 15 years are over, you have three options:
- Withdraw: Take the full money tax-free.
- Extend without Contribution: Keep the money there and earn interest.
- Extend with Contribution: Continue investing in blocks of 5 years (requires submitting Form H).
Frequently Asked Questions
What is the lock-in period for PPF?
PPF has a mandatory lock-in period of 15 financial years. However, partial withdrawals are allowed from the 7th year onwards.
Is PPF tax-free?
Yes, PPF falls under the EEE (Exempt-Exempt-Exempt) category. The principal investment (80C), the interest earned, and the maturity amount are all 100% tax-free.
What is the maximum investment limit?
You can invest a minimum of ₹500 and a maximum of ₹1.5 Lakhs per financial year in a PPF account. Investing more than ₹1.5 Lakhs will not earn any interest.
Can I open a PPF account for my child?
Yes, you can open a PPF account for a minor (child). However, the combined limit for parent and child accounts remains ₹1.5 Lakhs per year for tax benefits.
Can I extend my PPF account after 15 years?
Yes, you can extend your PPF account indefinitely in blocks of 5 years. You can choose to extend with or without further contributions.
What if I miss a yearly deposit?
Your account will become 'inactive'. To reactivate it, you need to pay a penalty of ₹50 per year of default plus the minimum subscription of ₹500 for each missed year.
Can I take a loan against PPF?
Yes, a loan facility is available from the 3rd to the 6th financial year of opening the account. The interest charged is usually 1% above the prevailing PPF interest rate.
Can I close PPF prematurely?
Premature closure is allowed only after completing 5 financial years, but only for specific reasons like higher education or medical treatment of self/family.
Is PPF safe?
PPF is one of the safest investments in India as it is backed by a Sovereign Guarantee from the Central Government.
Can NRIs open a PPF account?
NRIs cannot open a *new* PPF account. However, if they opened one before becoming an NRI, they can continue it until maturity (15 years) but cannot extend it further.