Can I withdraw from PPF before 15 years?

PPF does not allow full premature closure (except in specific cases like life-threatening illness or higher education). However, partial withdrawals are allowed from year 7 onwards - you can withdraw up to 50% of the balance at the end of year 4, or 50% of the balance at the end of the preceding year, whichever is lower. Only one partial withdrawal is permitted per financial year.

Can I take a loan against my PPF account?

Yes, you can take a loan against your PPF balance in years 3 to 6 (from the 3rd financial year up to the 6th financial year). The maximum loan amount is 25% of the balance at the end of the 2nd preceding financial year. The loan must be repaid within 36 months. Interest on the loan is charged at 1% above the PPF rate. After year 6, partial withdrawals (not loans) are permitted instead.

PPF Calculator

Q: What is PPF and who can open one?

PPF (Public Provident Fund) is a government-backed, long-term savings scheme in India offering guaranteed, tax-free returns. Any Indian resident can open a PPF account at a post office or authorised bank. NRIs are not eligible to open new PPF accounts, though existing accounts can be continued until maturity.

Q: What is the current PPF interest rate?

The PPF interest rate is set by the Government of India and revised quarterly. As of early 2026, the rate is 7.1% per annum. The rate is compound annually and is credited to the account at the end of each financial year.

Q: What is the PPF maturity period?

PPF has a mandatory 15-year lock-in period. After 15 years, you can withdraw the full balance, or extend the account in 5-year blocks (with or without further deposits). You can make partial withdrawals from the 7th year onward under specific conditions.

Q: Is PPF interest taxable?

No. PPF falls under the EEE (Exempt-Exempt-Exempt) tax regime: the annual contribution is deductible under Section 80C (up to ₹1.5 lakh), the interest earned is completely tax-free, and the maturity amount is also tax-free. This makes PPF one of the most tax-efficient investments available in India.

Q: How much will I get if I deposit ₹1.5 lakh per year in PPF for 15 years?

At the current rate of 7.1% p.a., depositing ₹1,50,000 at the start of each financial year for 15 years gives a maturity corpus of approximately ₹40.68 lakh. Total invested = ₹22.5 lakh. Total interest = ₹18.18 lakh. The entire amount is tax-free. Note: depositing before the 5th of April each year maximises interest earned for that year.

Calculate your PPF maturity amount and see year-by-year corpus growth for the 15-year lock-in.

Annual Investment ₹1,50,000

₹

₹500₹1.5 L

Interest Rate (% p.a.) 7.1%

% p.a.

1%15%

Tenure (Years) 15 Years

Maturity Amount

—

Total Deposited

—

Total Interest

—

📊 Year-by-Year Growth

🏛️ What is PPF?

PPF (Public Provident Fund) is one of India's most popular long-term savings instruments, established under the Public Provident Fund Act, 1968. It is a government-backed scheme that offers a guaranteed, fixed interest rate set by the Ministry of Finance on a quarterly basis. The combination of guaranteed returns, complete tax exemption, and sovereign backing (the government guarantees your money) makes PPF uniquely attractive among long-term savings options.

PPF accounts can be opened at any post office or at authorised bank branches. The minimum annual deposit is just ₹500, and the maximum is ₹1,50,000 per financial year. This flexibility makes it accessible to a wide range of savers, from those investing modest amounts regularly to high earners who want to maximize the tax-free 80C benefit.

The defining feature of PPF is its EEE (Exempt-Exempt-Exempt) tax status - arguably the most favourable possible. Your annual contribution of up to ₹1.5 lakh qualifies for Section 80C deduction, reducing your taxable income - use our Income Tax Calculator to see the exact saving in rupees based on your slab. The interest earned every year is completely tax-free. And the entire maturity amount at the end of 15 years is also tax-free. No other common investment instrument offers all three exemptions simultaneously.

The PPF interest rate as of early 2026 is 7.1% per annum, compounded annually. While this is lower than historical equity returns (12-15%), it is completely risk-free and tax-free. On a post-tax basis, a 7.1% tax-free PPF return is equivalent to approximately 10-10.5% pre-tax return for someone in the 30% tax bracket. This makes PPF competitive with even moderately performing debt funds after tax.

One important rule: to earn interest for a given month, you must deposit before the 5th of that month. Deposits made after the 5th earn no interest for that month. Therefore, making a lump-sum deposit in April (the start of the financial year) at the beginning of the month maximizes annual interest earned.

📐 PPF Formula

M = P × [((1+r)ⁿ − 1) ÷ r] × (1+r)

M = Maturity value at end of tenure

P = Annual deposit amount

r = Annual interest rate as decimal (e.g. 7.1% = 0.071)

n = Number of years

This is the future value of an annuity-due formula - it assumes deposits are made at the beginning of each year (before the 5th April to maximise interest, as per PPF rules). The extra (1+r) factor accounts for the first deposit earning interest for the entire year. The calculator also builds a year-by-year table to show the exact balance at the end of each year.

📖 How to Use This Calculator

Steps to Calculate PPF Maturity

Enter your annual deposit. The maximum is ₹1,50,000. To maximise 80C benefit, set it to ₹1,50,000.

Set the interest rate. The current rate (as of 2026) is 7.1%. You can change this to model potential future rate changes.

Select the tenure. PPF has a 15-year lock-in, but you can model extended periods of 20, 25, or 30 years (with 5-year extensions).

Click Calculate PPF to see the maturity amount, total deposited, and total interest. Click "Show" to see the year-by-year growth table.

💡 Example Calculations

Example 1 — Maximum Annual Deposit for 15 Years

₹1,50,000/year at 7.1% for 15 years

r = 0.071, n = 15, P = ₹1,50,000

M = 1,50,000 × [((1.071)¹⁵ − 1) ÷ 0.071] × 1.071

(1.071)¹⁵ = 2.7983 → annuity factor = (1.7983 / 0.071) × 1.071 = 27.14

Maturity ≈ ₹40,68,209 · Deposited = ₹22,50,000 · Interest = ₹18,18,209

Try this example →

Example 2 — Extended for 25 Years

₹1,50,000/year at 7.1% extended to 25 years

Same formula with n = 25 → (1.071)²⁵ = 5.584

Maturity ≈ ₹1,03,08,015 · Deposited = ₹37,50,000 · Interest = ₹65,58,015

Try this example →

📊 PPF Maturity Reference Table

The table below shows the approximate maturity amount at the current PPF rate of 7.1% p.a. for common deposit levels and tenures. All figures assume deposit at the start of each financial year (before 5th April). The entire maturity amount is tax-free.

Annual Deposit	Monthly Equiv.	15 Years	20 Years	25 Years	30 Years
₹6,000	₹500/mo	₹1.63 L	₹2.66 L	₹4.12 L	₹6.18 L
₹12,000	₹1,000/mo	₹3.25 L	₹5.33 L	₹8.25 L	₹12.36 L
₹36,000	₹3,000/mo	₹9.76 L	₹15.98 L	₹24.74 L	₹37.08 L
₹60,000	₹5,000/mo	₹16.27 L	₹26.63 L	₹41.23 L	₹61.80 L
₹1,00,000	₹8,333/mo	₹27.12 L	₹44.39 L	₹68.72 L	₹1.03 Cr
₹1,50,000	₹12,500/mo	₹40.68 L	₹66.58 L	₹1.03 Cr	₹1.55 Cr

Note: Figures are approximate. The exact amount depends on the deposit date within each month. Depositing before the 5th of each month earns full interest for that month.

💡 Maximizing Your PPF - Monthly Framing

Most people think of PPF in annual terms (₹1.5 lakh/year), but planning it monthly makes it far more actionable. The maximum PPF investment is ₹12,500 per month. Here's why hitting the maximum matters:

Tax saving on contribution: Depositing ₹1,50,000/year saves ₹15,000 in tax at the 10% slab, ₹30,000 at 20%, and ₹46,800 (incl. cess) at 30%. Use our Income Tax Calculator to compute your exact saving.
Tax-free interest: At 7.1%, you earn ₹10,650 in year 1 alone on a maxed account - and this compounds tax-free. A 30% bracket taxpayer would need a 10.1% pre-tax return from an FD to match this.
Long-term compounding: Maxing PPF for 25 years builds a corpus of over ₹1 crore tax-free. No other guaranteed-return instrument in India comes close on this combination of safety + post-tax yield.

Pro tip: Set up a standing instruction to transfer ₹12,500 to your PPF account on the 1st of every month. This ensures you always deposit before the 5th (the cut-off for that month's interest) and you never miss a month.

⚖️ PPF vs FD - Which is Better?

Both PPF and Fixed Deposits are popular safe-haven options for Indian investors. Here's a direct comparison:

Feature	PPF	Bank FD
Current Returns	7.1% p.a. (govt. set)	6.5–7.5% p.a. (varies by bank/tenure)
Tax on Interest	Fully tax-free (EEE)	Taxed at your income slab (TDS applies above ₹40,000/year)
Post-tax Return (30% bracket)	~7.1% effective	~4.9–5.3% effective
80C Deduction	Yes, up to ₹1.5 lakh/year	Only 5-year tax-saver FDs
Lock-in	15 years (partial withdrawal from yr 7)	7 days to 10 years (premature closure with penalty)
Risk	Zero - sovereign guarantee	Very low - DICGC insured up to ₹5 lakh
Liquidity	Low (long lock-in)	High (break FD anytime, minor penalty)

Verdict: For money you can lock away for 15+ years, PPF is clearly superior for taxpayers in the 20% or 30% bracket due to the EEE tax treatment. For shorter horizons or if you need flexibility, a Bank FD is more practical. Many investors use both: PPF for long-term, tax-free wealth building; FDs for medium-term goals requiring liquidity. Use our FD Calculator to compare the exact numbers for your scenario.

🏧 PPF Partial Withdrawal & Loan Rules

PPF is a 15-year lock-in scheme, but there are provisions for early access to funds in specific situations:

Partial Withdrawals (from Year 7)

Starting from the 7th financial year (counting from the year of account opening), you can make one partial withdrawal per financial year. The maximum amount you can withdraw is the lower of:

50% of the balance at the end of the 4th preceding financial year, or
50% of the balance at the end of the immediately preceding financial year

Partial withdrawals are completely tax-free and do not need to be repaid. They reduce your overall corpus and future interest earnings.

Loan Against PPF (Years 3–6)

Between the 3rd and 6th financial year of the account, you can take a loan against your PPF balance. Key rules:

Maximum loan: 25% of the balance at the end of the 2nd preceding financial year
Loan must be repaid within 36 months
Interest rate: PPF rate + 1% (currently 8.1% p.a.)
A second loan can be taken only after the first is fully repaid
Once you are eligible for partial withdrawals (year 7+), loans are no longer available

❓ Frequently Asked Questions

What is PPF and who can open one?+

PPF (Public Provident Fund) is a government-backed long-term savings scheme offering guaranteed, tax-free returns. Any Indian resident individual can open a PPF account at a designated post office or authorised bank (State Bank of India, ICICI Bank, HDFC Bank, and others). You can also open an account for a minor child. NRIs cannot open new PPF accounts, but those who opened accounts as residents can continue them until maturity.

What is the current PPF interest rate?+

The PPF interest rate for Q4 FY 2025-26 (January–March 2026) is 7.1% per annum, unchanged from the previous several quarters. The government reviews and announces the rate quarterly. Interest is compounded annually and credited to the account on 31 March each year. To earn interest for a full month, deposit must be made before the 5th of that month.

What is the PPF maturity period?+

PPF has a mandatory 15-year lock-in period from the end of the financial year in which the account was opened. After 15 years, you can withdraw the full amount tax-free. Alternatively, you can extend the account in 5-year blocks, either with further contributions (earning full interest) or without further contributions (existing corpus continues to earn interest). There is no limit on the number of 5-year extensions.

What is the minimum and maximum deposit for PPF?+

The minimum annual deposit is ₹500, and the maximum is ₹1,50,000 per financial year (April to March). Deposits can be made in one lump sum at any time or split into up to 12 monthly instalments. Any deposit exceeding ₹1,50,000 in a financial year earns no interest on the excess amount and is also not eligible for 80C deduction.

Is PPF interest taxable?+

PPF has full EEE (Exempt-Exempt-Exempt) tax status. The annual contribution up to ₹1,50,000 is deductible under Section 80C of the Income Tax Act. The interest earned every year is completely tax-free - no TDS, no declaration needed. The maturity amount (principal + all interest) is fully tax-free. This is in contrast to FDs where interest is taxed, making PPF's effective post-tax return significantly higher for taxpayers in higher brackets.

How much will I get if I deposit ₹1.5 lakh per year in PPF for 15 years?+

At 7.1% p.a. (current rate), depositing ₹1,50,000 at the start of each financial year for 15 years gives a maturity corpus of approximately ₹40.68 lakh. Total invested = ₹22.5 lakh. Total interest earned = ₹18.18 lakh. The entire ₹40.68 lakh is completely tax-free. Depositing before the 5th of April each year (start of financial year) maximises interest for the year.

Can I extend my PPF account after 15 years?+

Yes, PPF can be extended in 5-year blocks after the initial 15-year term. With deposits: you continue investing up to ₹1.5 lakh/year, earn 80C benefits, and interest continues on the full corpus. Without deposits: the existing corpus keeps earning interest but no new deposits are accepted; one partial withdrawal per year is permitted. You must apply for extension within 1 year of the maturity date, otherwise the account becomes a post-maturity account with restricted operations.

Is PPF better than NPS for retirement planning?+

PPF and NPS serve different purposes. PPF is EEE (fully tax-free) with a guaranteed 7.1% return - ideal for conservative, tax-efficient savings. NPS has higher return potential (10–12% historically via equity allocation) but only 60% of the corpus is tax-free at withdrawal; the remaining 40% must be used to purchase an annuity, which is taxable as income. PPF wins on tax efficiency and certainty; NPS wins on potential returns and equity exposure. Many advisors recommend both in a retirement portfolio. Use our NPS Calculator to model your NPS corpus alongside PPF.

Can I open a PPF account for my minor child?+

Yes. A parent or guardian can open a PPF account for a minor child. However, the combined deposits across the parent's own PPF account and the child's account cannot exceed ₹1,50,000 per financial year. Interest and growth in the child's account are clubbed with the parent's income for tax purposes until the child turns 18. After the child turns 18, the account continues in their name independently.