Work out what your Public Provident Fund (PPF) account will be worth at maturity. PPF currently pays 7.1% a year (July to September 2026 quarter), compounded yearly, and the whole maturity amount is tax-free.
| Year | Deposit | Interest | Balance |
|---|
Interest is worked out every month on the lowest balance between the 5th and the last day of the month, and added to the account once a year on 31 March. That is why a deposit made on or before 5 April earns interest for the whole year. The calculator assumes you deposit at the start of each financial year.
Balance at year end = (last year's balance + this year's deposit) × (1 + rate)
| Deposit | Period | You put in | Maturity |
|---|---|---|---|
| ₹12,000 a year | 15 years | ₹1.8 lakh | ₹3.25 lakh |
| ₹50,000 a year | 15 years | ₹7.5 lakh | ₹13.56 lakh |
| ₹1,00,000 a year | 15 years | ₹15 lakh | ₹27.12 lakh |
| ₹1,50,000 a year | 15 years | ₹22.5 lakh | ₹40.68 lakh |
| ₹1,50,000 a year | 20 years | ₹30 lakh | ₹66.58 lakh |
| ₹1,50,000 a year | 25 years | ₹37.5 lakh | ₹1.03 crore |
Extending the account after 15 years is where PPF really adds up, because the interest keeps compounding tax-free.
Compare with a fixed deposit, whose interest is taxable, or a mutual fund SIP, which can grow faster but is not guaranteed.
About ₹40.68 lakh at 7.1%, from ₹22.5 lakh deposited. All of it is tax-free.
7.1% a year for July to September 2026, unchanged from the previous quarter. The government reviews small savings rates every quarter.
If you do not deposit at least ₹500 in a year, the account becomes inactive. You can revive it by paying ₹500 for each missed year plus a ₹50 penalty per year.
No. One person can hold only one PPF account. You can open one for a minor child as guardian, but the ₹1.5 lakh yearly limit covers both accounts together.
For long-term savers in the old tax regime, usually yes: PPF interest is tax-free while FD interest is taxed at your slab rate. But PPF locks your money for 15 years, while an FD can be as short as a few months.
