PPF Calculator
Calculate your Public Provident Fund (PPF) returns, maturity amount, and tax benefits. Plan your long-term savings with India's most popular tax-saving investment scheme offering guaranteed returns.
PPF Maturity Results
Tax Savings Analysis
Investment Comparison
Understanding Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term savings scheme offered by the Government of India through banks and post offices. It provides attractive interest rates, tax benefits, and serves as an excellent tool for retirement planning and wealth creation.
PPF Key Features
| Feature | Details | Benefits |
|---|---|---|
| Interest Rate | 7.1% (FY 2023-24) | Guaranteed returns |
| Tax Benefits | 80C deduction + tax-free growth | Significant tax savings |
| Lock-in Period | 15 years (extendable by 5 years) | Disciplined savings |
| Risk Level | Government guaranteed | 100% capital protection |
| Contribution Limits | ?500-?1.5 lakh annually | Flexible contributions |
Eligibility and Opening
- Who Can Open: Indian residents and HUFs
- Age Limit: No upper age limit for opening
- Where to Open: Banks, post offices, and select financial institutions
- Documents Required: PAN card, address proof, and photographs
- Online Opening: Available through SBI YONO and other banking apps
- Joint Account: Can be opened jointly with spouse or children
Contribution Rules
PPF has flexible contribution rules with minimum and maximum limits.
- Minimum Contribution: ?500 per year (can be in installments)
- Maximum Contribution: ?1.5 lakh per year
- Number of Deposits: Minimum 1, maximum 12 per year
- Deposit Timing: Any time within the financial year
- Late Deposit: Allowed within 5 years with penalty
- Loan Facility: Available after 3 years of opening
Tax Benefits
- Section 80C: Contributions up to ?1.5 lakh eligible for deduction
- Tax-Free Growth: Interest earned is completely tax-free
- Tax-Free Maturity: Entire maturity amount is tax-exempt
- No TDS: No tax deduction at source on interest
- Wealth Tax: Exempt from wealth tax
- Estate Duty: Exempt from estate duty
Withdrawal Rules
- Lock-in Period: 15 years mandatory lock-in
- Partial Withdrawal: Allowed from 7th year onwards
- Withdrawal Limit: 50% of balance at end of 4th year or 7th year
- Extension: Account can be extended in blocks of 5 years
- Premature Closure: Allowed after 5 years with penalty
- Death Benefit: Nominee receives full accumulated amount
Loan Facility
- Eligibility: Available after completion of 3 years
- Loan Amount: Up to 25% of balance at end of 2nd year
- Interest Rate: 1% above PPF interest rate
- Repayment: Within 36 months in not more than 24 installments
- Purpose: Higher education, house construction, illness treatment
- Tax Treatment: Interest paid is not tax-deductible
Interest Calculation
PPF interest is calculated on the lowest balance between 5th and last day of each month.
- Compounding: Compounded annually but credited monthly
- Interest Credit: Added to account on 31st March each year
- Rate Revision: Reviewed quarterly by government
- Historical Rates: Ranged from 8% (early 2000s) to 7.1% (current)
- Guarantee: Government guarantees interest rate and principal
Comparison with Other Investments
- vs. Fixed Deposits: PPF offers tax benefits, FDs don't
- vs. ELSS: PPF has guaranteed returns, ELSS has market risk
- vs. NPS: PPF has higher returns, NPS offers market-linked returns
- vs. EPF: PPF is voluntary, EPF is mandatory for employees
- vs. RD: PPF has longer lock-in but better tax benefits
PPF for Different Goals
- Retirement Planning: Long-term wealth creation with tax benefits
- Tax Saving: Utilize full 80C limit for tax deduction
- Emergency Fund: Partial withdrawals available after 7 years
- Child's Education: Plan for future education expenses
- Loan Security: Use as collateral for loans
- Estate Planning: Pass on wealth to nominees tax-free
PPF Advantage: Public Provident Fund offers the perfect combination of guaranteed returns, tax benefits, and safety. It's one of the best investment options for risk-averse investors looking for long-term wealth creation and tax-efficient retirement planning in India.