Calculate your PPF maturity amount and tax savings. Current rate: 7.1% p.a. Triple tax exemption (EEE) — the most tax-efficient investment in India.
The Public Provident Fund (PPF) is a government-backed long-term savings scheme offering the unique EEE (Exempt-Exempt-Exempt) tax status — making it the most tax-efficient investment instrument in India for middle and upper-income earners.
EEE means: your annual contribution qualifies for 80C deduction (saves tax now), the interest earned is completely tax-free (saves tax every year), and the maturity amount is entirely tax-free (saves tax at withdrawal). No other mainstream investment in India offers this triple benefit.
PPF uses annual compounding. Interest is calculated on the minimum balance between the 5th and last day of each month at the Government-declared quarterly rate. Interest is credited on March 31st each year.
Critical rule: Always deposit your PPF contribution before the 5th of April each year to earn interest for the full financial year. Depositing on April 6th instead of April 4th costs you an entire year's interest on that contribution — potentially ₹5,000–10,000 on a ₹1.5 lakh deposit.
| Feature | PPF | ELSS Fund | NPS (Tier I) | Tax-saving FD |
|---|---|---|---|---|
| Expected returns | 7.1% (fixed) | 12–14% (market) | 9–11% (mixed) | 6.5–7.5% |
| Lock-in period | 15 years | 3 years | Till age 60 | 5 years |
| Tax on interest/returns | Fully tax-free | LTCG above ₹1L | Partial taxable | Fully taxable |
| 80C deduction | Yes (₹1.5L) | Yes (₹1.5L) | Yes + ₹50K extra | Yes (₹1.5L) |
| Premature exit | From year 7 (partial) | After 3 years | Emergency only | Not allowed |
| Risk level | Zero | Market risk | Low-medium | Zero |
Verdict: For zero-risk investors: PPF beats tax-saving FD on every metric — higher rate, better tax treatment, and more flexibility. For investors who accept some risk: ELSS historically delivers 12–14% vs PPF's 7.1%, making the wealth gap enormous over 15+ years.
Open PPF at any public sector bank (SBI, BOB, PNB) or India Post online. Minimum ₹500/year. Max ₹1.5 lakh/year. Up to 12 deposits per year allowed.
From year 3 to year 6, you can take a loan of up to 25% of balance at end of 2nd preceding year. Interest is just 1% above PPF rate — one of the cheapest credit options available.
From year 7, you can withdraw up to 50% of balance at end of year 4 (or end of preceding year, whichever is lower). One withdrawal per year allowed.
1) Withdraw full amount (tax-free). 2) Extend 5 years with fresh contributions (continues earning + new deposits). 3) Extend without contributions (balance earns interest, no new deposits needed).