PPF Calculator
Calculate PPF maturity with loan & withdrawal options.
PPF Investment Details
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PPF Maturity Summary
What is PPF (Public Provident Fund)?
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, established under the Public Provident Fund Act, 1968. It is one of the most popular and secure investment options for individuals looking to build a retirement corpus or save for long-term financial goals. PPF offers an attractive interest rate — currently 7.1% per annum (Q1 2026) — with the benefit of tax exemption under Section 80C of the Income Tax Act. The interest earned and the maturity amount are both completely tax-free, making PPF a true EEE (Exempt-Exempt-Exempt) investment instrument.
Any Indian resident can open a PPF account at a post office or authorized bank. A PPF account has a lock-in period of 15 years, which can be extended in blocks of 5 years indefinitely. The minimum annual deposit is ₹500 and the maximum is ₹1,50,000. Deposits can be made in a lump sum or in up to 12 installments per financial year. Interest is compounded annually and credited at the end of each financial year on the minimum balance between the 5th and the last day of each month.
PPF Rules & Key Features
- Tenure: 15 years mandatory lock-in. Can be extended in 5-year blocks with or without further contributions.
- Deposit Limits: Minimum ₹500, maximum ₹1,50,000 per financial year. Failure to deposit the minimum amount results in account becoming dormant.
- Interest Calculation: Interest is calculated on the minimum balance between the 5th and the last day of each month. It is advisable to deposit before the 5th of each month to maximize interest.
- Tax Benefits: Deposits qualify for deduction under Section 80C (up to ₹1.5 lakh). Interest earned is tax-free. Maturity proceeds are fully exempt from tax.
- Nomination: You can nominate one or more persons at the time of opening the account or later.
- Joint Account: PPF accounts cannot be held jointly. However, a guardian can operate the account on behalf of a minor.
- Premature Closure: Allowed after 5 years for specific reasons like life-threatening illness, higher education, or change in residency status. A penalty of 1% interest is deducted.
Loan Against PPF
PPF account holders can avail a loan against their PPF balance between the 3rd and 6th financial year of opening the account. This facility provides liquidity without breaking the long-term investment. Key features of the PPF loan facility:
- Eligibility: Loan can be taken from the 3rd year to the 6th year from the end of the financial year in which the account was opened.
- Maximum Loan: 25% of the balance at the end of the 2nd preceding financial year. For example, if you apply for a loan in FY 2026-27, the maximum is 25% of the balance at the end of FY 2024-25.
- Interest Rate: 1% above the prevailing PPF interest rate (currently 8.1% if PPF rate is 7.1%).
- Repayment: The loan must be repaid within 36 months (3 years) from the date of sanction. Repayment can be made in lump sum or installments.
- Second Loan: A second loan can be taken only after the first loan is fully repaid.
- Default: If the loan is not repaid within 36 months, interest at 6% above the PPF rate will be charged on the outstanding amount.
Partial Withdrawal from PPF
Partial withdrawal from PPF is permitted from the 7th financial year onwards. This provides financial flexibility while keeping the account active. Important rules for partial withdrawal:
- Eligibility: Withdrawals can be made from the 7th financial year after the account is opened.
- Maximum Amount: 50% of the balance at the end of the 4th preceding year or the preceding year, whichever is lower. For example, in FY 2026-27, the limit is 50% of the balance at the end of FY 2022-23 or FY 2025-26, whichever is less.
- Frequency: Only one withdrawal is allowed per financial year.
- Tax Treatment: Withdrawals are completely tax-free.
- After Extension: During the 5-year extension period, withdrawals are limited to 60% of the balance at the start of the extension period.
PPF vs EPF vs NPS — Comparison
| Feature | PPF | EPF | NPS |
|---|---|---|---|
| Eligibility | Any Indian resident | Salaried employees (organized sector) | Any Indian citizen (18–65 years) |
| Lock-in Period | 15 years (extendable) | Till retirement/resignation | Till 60 years (partial exit allowed) |
| Max Investment | ₹1,50,000/year | 12% of basic salary (employee + employer) | No upper limit |
| Interest/Returns | 7.1% (fixed by govt quarterly) | 8.25% (EPFO declared, varies yearly) | Market-linked (8–12% historically) |
| Tax on Maturity | Tax-free (EEE) | Tax-free (EEE) if 5+ years service | 60% tax-free, 40% annuity taxable |
| Loan Facility | Yes (year 3–6) | Yes (various purposes) | Yes (after 3 years, limited) |
| Risk Level | Zero (govt backed) | Very low (govt backed) | Moderate (market-linked) |
| Best For | Conservative long-term savers | Salaried individuals | Aggressive wealth builders |
Each instrument has its own strengths. PPF is ideal for risk-averse investors seeking guaranteed returns with full tax exemption. EPF is mandatory for salaried employees and provides a solid retirement foundation. NPS suits those comfortable with market-linked returns and seeking higher growth potential. A balanced portfolio often includes a combination of all three for optimal diversification.