PPF Calculator
Project your Public Provident Fund maturity with the 15-year lock-in.
Frequently Asked Questions
What is a Public Provident Fund (PPF)?
PPF is a popular long-term savings-cum-tax-saving instrument in India, backed by the Central Government, offering safety and attractive interest rates.
What is the current PPF interest rate?
The interest rate is reviewed quarterly by the Government. It typically ranges between 7% and 8% per annum.
What is the lock-in period for PPF?
PPF has a mandatory lock-in period of 15 years. However, you can extend it in blocks of 5 years after the initial 15-year term.
What is the maximum amount I can invest in PPF?
The maximum investment limit is ₹1.5 Lakhs per financial year, which also qualifies for tax deduction under Section 80C.
Can I withdraw money from my PPF account early?
Partial withdrawals are allowed from the 7th financial year onwards, subject to specific limits and conditions.
Is PPF interest tax-free?
Yes, PPF follows the EEE (Exempt-Exempt-Exempt) tax status. The investment, the interest earned, and the final maturity amount are all tax-free.
How is PPF interest calculated?
Interest is calculated on the minimum balance in the account between the 5th and the last day of every month. It is compounded annually at the end of the financial year.
Can I open a PPF account for my child?
Yes, parents or guardians can open a PPF account on behalf of a minor, but the total investment across both accounts cannot exceed ₹1.5 Lakhs annually.
Can I take a loan against my PPF account?
Yes, you can take a loan against your PPF balance starting from the 3rd financial year up to the 6th financial year.
What happens if I forget to deposit the minimum ₹500 in a year?
Your account will be 'deactivated'. You can reactivate it by paying a small penalty of ₹50 per year of default plus the minimum deposit.