PPF Calculator

What is PPF?

Public Provident Fund is a government-backed long-term savings scheme with guaranteed returns and complete tax benefits. Its one of the safest investment options in India.

PPF Features

• Lock-in: 15 years mandatory
• Min Investment: ₹500/year
• Max Investment: ₹1.5 lakh/year
• Interest Rate: 7.1% (reviewed quarterly)
• Tax Status: EEE (Exempt-Exempt-Exempt)

Interest Calculation

Interest is calculated on minimum balance between 5th and end of each month. Interest is compounded annually and credited at year-end (March 31).

Withdrawal Rules

• Partial withdrawal allowed from year 7
• Max 50% of balance at end of 4th preceding year
• One withdrawal per year allowed
• Loan facility from year 3 to year 6

Account Extension

• Can extend in blocks of 5 years after maturity
• Option 1: Without contribution (balance earns interest)
• Option 2: With contribution (continue investing)

PPF vs Other Options

• vs FD: PPF has lower rate but tax-free returns
• vs ELSS: PPF is safer but lower returns potential
• vs EPF: PPF is voluntary, EPF is compulsory for employees

Investment Strategy

• Invest full ₹1.5L on April 1st for maximum returns
• If investing monthly, do it before 5th
• Continue till maturity to maximize compounding
• Consider extension for continued tax-free growth