PPF
Public Provident Fund: a government-backed, tax-free savings account with a 15-year lock-in.
Your PPF grows to ₹40.7L
₹1,50,000 a year for 15 years: ₹22,50,000 in, ₹18,18,209 of interest, all tax-free. To match that after tax, a taxable deposit would need to pay 10.32% at your 30% slab.
Balance by year
Show the numbers as a table
| Year | Deposited | Balance |
|---|---|---|
| 1 | ₹1,50,000 | ₹1,60,650 |
| 2 | ₹3,00,000 | ₹3,32,706 |
| 3 | ₹4,50,000 | ₹5,16,978 |
| 4 | ₹6,00,000 | ₹7,14,334 |
| 5 | ₹7,50,000 | ₹9,25,701 |
| 6 | ₹9,00,000 | ₹11,52,076 |
| 7 | ₹10,50,000 | ₹13,94,524 |
| 8 | ₹12,00,000 | ₹16,54,185 |
| 9 | ₹13,50,000 | ₹19,32,282 |
| 10 | ₹15,00,000 | ₹22,30,124 |
| 11 | ₹16,50,000 | ₹25,49,113 |
| 12 | ₹18,00,000 | ₹28,90,750 |
| 13 | ₹19,50,000 | ₹32,56,643 |
| 14 | ₹21,00,000 | ₹36,48,515 |
| 15 | ₹22,50,000 | ₹40,68,209 |
How this is calculated
Interest is worked out on the lowest balance between the 5th and the end of each month and credited once a year; depositing by 5 April earns it on the whole year’s deposit.
PPF is exempt at every stage: deposits count toward 80C in the old regime, and interest and maturity are tax-free. Partial withdrawals are allowed from year 7. The government sets the rate each quarter; it’s assumed constant here.
Frequently asked questions
What is the PPF interest rate now?
7.1% a year for October–December 2026. The government reviews the rate every quarter.
What is the PPF lock-in period?
15 years. After that you can extend the account in blocks of 5 years, with or without fresh deposits. Partial withdrawals are allowed from the 7th year.
Is PPF interest taxable?
No. Deposits count toward 80C in the old regime, and both the interest and the maturity amount are tax-free.
When should I deposit in PPF to earn the most?
By 5 April each year. Interest is worked out on the lowest balance between the 5th and the end of each month, so an early deposit earns interest for the whole year.