Calculators Government Schemes
Public Provident Fund (PPF)
Enter your monthly or yearly deposit — get the exact 15-year maturity value, year-by-year compounding table, loan eligibility (Years 3 to 6), and all three post-maturity options with real numbers. Based on the official PPF Scheme 2019 gazette.
PPF Calculator
Matures in FY 2041–42 · 7.1% p.a. compounded annually · EEE tax status
Quick scenarios — what does ₹X/month grow to at 7.1%?
Year-by-year breakdown (all 15 years)
| Year | FY | Deposit | Interest at 7.1% | Closing balance |
|---|---|---|---|---|
| 1 | FY 2026-27 | ₹60,000 | ₹4,260 | ₹64,260 |
| 2 | FY 2027-28 | ₹60,000 | ₹8,822 | ₹1,33,082 |
| 3 | FY 2028-29 | ₹60,000 | ₹13,709 | ₹2,06,791 |
| 4 | FY 2029-30 | ₹60,000 | ₹18,942 | ₹2,85,733 |
| 5 | FY 2030-31 | ₹60,000 | ₹24,547 | ₹3,70,281 |
| 6 | FY 2031-32 | ₹60,000 | ₹30,550 | ₹4,60,830 |
| 7 | FY 2032-33 | ₹60,000 | ₹36,979 | ₹5,57,809 |
| 8 | FY 2033-34 | ₹60,000 | ₹43,864 | ₹6,61,674 |
| 9 | FY 2034-35 | ₹60,000 | ₹51,239 | ₹7,72,913 |
| 10 | FY 2035-36 | ₹60,000 | ₹59,137 | ₹8,92,050 |
| 11 | FY 2036-37 | ₹60,000 | ₹67,596 | ₹10,19,645 |
| 12 | FY 2037-38 | ₹60,000 | ₹76,655 | ₹11,56,300 |
| 13 | FY 2038-39 | ₹60,000 | ₹86,357 | ₹13,02,657 |
| 14 | FY 2039-40 | ₹60,000 | ₹96,749 | ₹14,59,406 |
| 15 | FY 2040-41 | ₹60,000 | ₹1,07,878 | ₹16,27,284 |
| Total | ₹9,00,000 | ₹7,27,284 | ₹16,27,284 | |
Why PPF still makes sense in 2026
7.1% doesn't sound impressive in a year where many fixed deposits offer 7%+ too. But PPF's tax treatment changes the math entirely.
- EEE: the rarest tax structure in Indian investing. Your deposits reduce taxable income (80C, up to ₹1.5L/yr). The interest compounds tax-free. The entire maturity amount is tax-free. At a 30% tax slab, the effective post-tax yield is closer to 10%+ — well above any FD.
- Sovereign guarantee with no credit risk. PPF balances are backed by the Government of India. Unlike corporate FDs or even bank FDs (which are insured only up to ₹5 lakh under DICGC), there is no default risk.
- 15 years forces the discipline most people lack. Compounding works best when you can't touch the money. PPF's lock-in is a feature, not a bug — the limited liquidity (loan from Year 3, withdrawal from Year 7) is enough for most genuine emergencies without letting you derail the investment.
- The honest caveat: ELSS and index funds will likely beat it over 15 years. If you've already maxed out your 80C via PPF and still have surplus, equity investments have historically outperformed PPF over 15-year periods. PPF is the foundation — the capital-protected, guaranteed-rate layer of your portfolio — not the growth engine.
- The deposit-before-5th-April rule is worth knowing. PPF interest is calculated on the lowest balance between the 5th and end of each month. Deposit your annual contribution between 1–5 April and it earns interest for all 12 months. Deposit it in March and it earns interest for only one month. On ₹1.5 lakh, this difference is roughly ₹9,000–10,000 per year.
What happens after 15 years — exactly
This is the most misunderstood part of PPF. The gazette gives you three legally distinct choices. Getting this wrong costs real money.
Close the account
Apply in Form-3 anytime after maturity. Receive the entire balance plus interest up to the last day of the month before closure. No deadline — you can close it years after the 15-year maturity.
Best for: You need the lump sum now or want to move it to a different instrument.
Continue without deposits
No action needed. Simply do not close the account. The balance keeps earning interest at 7.1% p.a. You can make one withdrawal per year of any amount — there is no 50% cap in this mode.
Critical rule: Once you continue without deposits for more than 1 year, you permanently lose the ability to switch to Option C (with deposits). Decide within the first year after maturity.
Best for: You don't need the full lump sum but want an annual tax-free income from the account.
Extend with deposits — 5-year blocks
Apply Form-4 within 1 year of maturity. Continue depositing up to ₹1,50,000/yr. The account compounds at 7.1%. You can withdraw up to 60% of the balance at the start of the block during the 5-year period (once per year).
After each 5-year block you can extend again — any number of times, indefinitely. Or you can switch to Option B at the end of any block.
Best for: You still have income, want the 80C deduction, and want to compound the corpus further.
The B vs C decision — when does it matter?
| Factor | Option B (no new deposits) | Option C (with deposits, 5-yr block) |
|---|---|---|
| Application required | No — passive continuation | Yes — Form-4 within 1 year of maturity |
| Deposits allowed | No | Yes, up to ₹1,50,000/yr |
| Withdrawal limit | Any amount, once/year | 60% of opening block balance, once/year |
| 80C deduction | No | Yes (on new deposits) |
| Deadline | None — can stay in B forever | Must apply within 1 year of maturity |
| Can you switch from B to C? | Only within 1 year of maturity. After that: No. | |
PPF loan rules — exactly as per gazette
Many sites get this wrong. The official rule (Section 8, PPF Scheme 2019) says: loans are available after expiry of one year from end of year of initial subscription and before expiry of five years from that date. This translates to Years 3, 4, 5, and 6 only.
Worked example: PPF loan in Year 5
You deposit ₹5,000/month (₹60,000/year) from 1 April each year. In Year 5 you need funds. Loan cap = 25% of the balance at the end of Year 3 (the 2nd year preceding the year of application).
| Year | Opening balance | Annual deposit | Interest @ 7.1% | Closing balance |
|---|---|---|---|---|
| 1 | ₹0 | ₹60,000 | ₹4,260 | ₹64,260 |
| 2 | ₹64,260 | ₹60,000 | ₹8,822 | ₹1,33,082 |
| 3 ← reference | ₹1,33,082 | ₹60,000 | ₹13,709 | ₹2,06,791 |
- Maximum loan in Year 5: 25% × ₹2,06,791 = ₹51,698
- Interest cost (repaid within 36 months): 1% p.a. on outstanding amount — approximately ₹517/year. Total cost for a 3-year loan: ≈ ₹1,551. One of the cheapest borrowing rates in India.
- Missed the 36-month window? Rate jumps to 6% p.a., backdated to the date of drawl. The penalty interest is debited directly from your PPF balance at year-end.
Note: Loans are not available on discontinued accounts. The account must be in good standing (minimum ₹500 deposited each year) to avail a loan.
Partial withdrawal rules — from Year 7
Unlike the loan (which closes in Year 6), partial withdrawals become available from Year 7 and continue through maturity. Section 10 of the gazette specifies the cap as 50% of the lower of two balances:
- Which year: Available from Year 7 onwards (after 5 years from the end of the year the account was opened).
- How much: 50% of the balance at the end of the 4th year immediately preceding the withdrawal year — OR 50% of the preceding year's balance — whichever is lower.
- Frequency: Only once per financial year.
- Condition: Any outstanding PPF loan must be fully repaid before making a partial withdrawal.
- For a minor's account: The guardian applies, and the withdrawal is for the benefit of the minor only.
Worked example: partial withdrawal in Year 9
You deposit ₹1,00,000/year (₹8,333/month) from 1 April each year. In Year 9 you need funds. Formula: 50% of the lower of (end-of-Year-5 balance) or (end-of-Year-8 balance). Since the balance grows every year, Year 5 is always lower — it sets the cap.
| Year | Closing balance | Withdrawal cap |
|---|---|---|
| 1 | ₹1,07,100 | |
| 2 | ₹2,21,804 | |
| 3 | ₹3,44,653 | |
| 4 | ₹4,76,223 | |
| 5 ← binding cap | ₹6,17,135 | 50% = ₹3,08,568 |
| 6 | ₹7,68,052 | |
| 7 | ₹9,29,683 | |
| 8 | ₹11,02,790 | 50% = ₹5,51,395 |
- Maximum withdrawal in Year 9: ₹3,08,568 — 50% of the Year 5 balance, which is lower than 50% of Year 8 (₹5,51,395).
- You cannot exceed this cap regardless of how large the current balance has grown. The reference year is fixed by the gazette formula.
- Withdrawals are completely tax-free and require no proof of purpose — unlike premature closure, which needs documented grounds.
- Any outstanding PPF loan must be fully repaid before a withdrawal is allowed.
Use the Loan tab in the calculator above to see the exact withdrawal limits for each year based on your deposit amount.
Premature closure — the rules, exactly
PPF is a 15-year scheme. Exiting early is possible, but only under specific legal grounds and with a real penalty. Here is what the gazette (Section 13, PPF Scheme 2019) actually says.
Three grounds that qualify
Medical condition of the account holder, their spouse, dependent children, or parents. Documents: treating doctor's certificate, hospital records.
The account holder's own higher education or that of their dependent children. Documents: confirmed admission letter from a recognised institution.
Becoming a Non-Resident Indian after the account was opened. Documents: visa copy, emigration documents, or foreign employment proof.
What the 1% penalty actually costs
The penalty is not a flat fee. Your entire interest history is recalculated at (scheme rate − 1%). The excess already credited is recovered before the final payout. At 7.1%, you would be recalculated at 6.1% for every year the account was held. On a ₹1.5L/year account closed in Year 8, this costs approximately ₹32,000–₹38,000 in recovered interest — a significant haircut. The longer you hold before closing, the larger the recovered amount.
The bottom line: Premature closure is a last resort. The loan facility (Year 3–6) and partial withdrawals (Year 7+) exist precisely to cover emergencies without forcing closure.
Key rules at a glance
Eligibility — who can open a PPF account
- Any resident Indian individual (adult) can open one PPF account.
- A guardian can open one account on behalf of a minor or a person of unsound mind.
- Only one account per person across all banks and post offices in India. Duplicate accounts earn interest at scheme rate on the first account only; the second account gets interest at Post Office Savings Account rate (much lower).
- Joint accounts are not allowed.
- NRIs cannot open new accounts. Existing accounts (opened as resident Indians) can run to the 15-year maturity but cannot be extended.
- HUFs cannot open accounts (rule since 13 May 2005).
Deposit limits and timing
- Minimum: ₹500 per financial year (multiples of ₹50).
- Maximum: ₹1,50,000 per financial year — inclusive of deposits in both your own account and a minor's account (if you are the guardian).
- No limit on number of installments; any amount in any month.
- Best strategy: Deposit the full amount between 1–5 April to earn interest for all 12 months. Depositing after the 5th of any month means you lose interest for that month on the deposited amount.
How interest is calculated and credited
- Calculated on the lowest balance between close of 5th day and end of month for each calendar month.
- Rate: 7.1% p.a. (unchanged since April 2020; next review: quarterly).
- Credited to the account once per year, at end of financial year (31 March).
- Interest is fully tax-free — no TDS, no income tax, regardless of amount.
- Even a discontinued (irregular) account earns interest at the scheme rate until it is finally closed.
Premature closure before 15 years
- Premature closure is allowed only after 5 years from end of year of opening.
- Only three grounds are permitted:
- Life-threatening disease of the account holder, spouse, dependent children, or parents.
- Higher education of the account holder or dependent children.
- Change in residency status (becoming an NRI).
- Penalty: 1% lower interest rate applied to all interest credited since account opening (or last extension). This is applied retroactively — the account is recalculated at (current rate − 1%) and the excess interest already credited is recovered.
- Apply in Form-5. Documentary evidence required for the ground claimed.
Discontinued accounts — revival and restrictions
- An account becomes discontinued (irregular) if the minimum ₹500 is not deposited in any financial year after the first.
- Revival: Pay ₹50 penalty per defaulted year plus the minimum ₹500 deposit for each missed year.
- A discontinued account still earns interest at the scheme rate.
- However, loans and partial withdrawals are not available on a discontinued account until it is revived.
Protection from court attachment
Section 15 of the PPF Scheme 2019 explicitly states that the amount standing to the credit of a PPF subscriber cannot be attached under any decree or order of any court in respect of any debt or liability incurred by the account holder. This is a constitutionally backed protection that makes PPF one of the safest places to hold long-term savings.
PPF vs SSY: which should you choose?
PPF interest: 3 things most people get wrong
Searching for "how is PPF interest calculated" returns a lot of conflicting information. Here are the three most common misconceptions, with the gazette text as the source of truth.
Misconception 1: "PPF interest is calculated on the month-end balance"
Correct rule (Section 5, PPF Scheme 2019): Interest is computed on the lowest balance between the close of the 5th day and the end of the month. This is the mechanic behind the 1–5 April rule.
- Deposit ₹1.5 lakh on 1 April: that balance is present on the 5th — earns interest for all 12 months.
- Deposit ₹1.5 lakh on 7 April: the lowest balance between the 5th and end of April excludes that deposit — you earn zero interest on it for April.
- On ₹1.5 lakh, missing the 5th by just two days costs ₹1,50,000 × 7.1% ÷ 12 ≈ ₹888 in lost interest for that one month.
Misconception 2: "PPF interest is credited monthly"
Correct rule: Interest is calculated each month but credited only once a year — at 31 March (end of the financial year). It does not appear in your passbook until then.
Practical implication: if you check your balance in October and ask your bank for loan eligibility, the displayed balance will not include the 7 months of accrued-but-uncredited interest. The reference balance for any loan or withdrawal calculation uses only credited interest.
Misconception 3: "A discontinued account stops earning interest"
Correct rule: A discontinued account — one where the minimum ₹500 was not deposited in one or more financial years — continues to earn interest at the full PPF scheme rate (currently 7.1%) until it is finally closed. The interest is credited at 31 March each year, same as a regular account.
What you lose on a discontinued account: the right to take a loan or make partial withdrawals. Both are suspended until you revive the account by paying ₹50 penalty per missed year plus the minimum ₹500 deposit for each missed year.
PPF vs alternatives: quick reference
PPF does not compete with every instrument. It competes with other ₹1.5L/year 80C options and with the "safe" portion of a portfolio. This table tells you when PPF wins and when it doesn't.
| PPF | Bank FD | ELSS | NPS Tier I | |
|---|---|---|---|---|
| Return | 7.1% govt-set, guaranteed | 6.5–7.5% (varies by bank & tenure) | 10–14% historical (not guaranteed) | 9–12% equity allocation (not guaranteed) |
| 80C deduction | Yes — old regime only | 5-yr tax-saver FD only; old regime | Yes — both old & new regime | Yes + extra ₹50K via 80CCD(1B); old regime |
| Tax on returns | Fully tax-free | Taxed at slab rate (TDS 10%) | LTCG 12.5% above ₹1.25L/yr | 60% lump sum tax-free at 60; 40% must buy annuity (annuity taxed at slab) |
| Risk | Zero — sovereign-guaranteed | Near-zero (DICGC up to ₹5L) | High (equity mutual fund) | Medium (equity + debt mix) |
| Minimum lock-in | 15 years (partial from Yr 7) | None (penalty on early break) | 3 years (strictly) | Till age 60 |
| Emergency exit | Loan Yr 3–6; withdrawal Yr 7+; premature closure (3 grounds only) | Anytime — 1–3% penalty | Full exit after 3 years | Partial (25% for specific reasons); full at 60 with annuity mandate |
| Best suited for | Risk-free EEE savings, old-regime taxpayers, 15-yr wealth base | Short-to-medium term parking, retirees | 80C + long-term growth (10+ years) | Retirement-only corpus, salaried employees wanting pension |
Return figures for ELSS and NPS are long-term historical averages; actual returns will vary. PPF's 7.1% is the current government-notified rate and may change quarterly. ELSS and NPS are subject to market risk.
Frequently asked questions about PPF
What is the PPF interest rate in 2026?
7.1% per annum, compounded annually. This rate has been unchanged since April 2020. The Ministry of Finance reviews it quarterly — check after June 2026 for any revision for Q2 FY 2026-27.
From which year can I take a loan against PPF?
From Year 3 through Year 6 only. Section 8 of the PPF Scheme 2019 specifies: after expiry of 1 year from end of year of initial subscription, and before expiry of 5 years from that date. If your account was opened in FY 2020-21, the loan window is FY 2022-23 to FY 2025-26 (Years 3 to 6).
How much loan can I take from PPF?
Up to 25% of the balance at the end of the 2nd year immediately preceding the year of loan application. Only one loan per year. No new loan until the previous one is fully repaid with interest. Use the Loan tab above to calculate your exact eligible amount.
What happens if I don't repay the PPF loan in 36 months?
The interest rate jumps from 1% p.a. to 6% p.a., applied retroactively from the date of loan drawl. The interest is debited from your PPF account at the end of each financial year. You cannot take a new loan until the old one is cleared.
Can I continue PPF after 15 years without making deposits?
Yes. Under Section 11(2) of the PPF Scheme 2019, you can retain the account without making fresh deposits. The balance earns interest at the current rate (7.1%). You can make one withdrawal per year of any amount. No form or application is required — simply don't close the account.
What is the 60% withdrawal rule in PPF?
When you extend your PPF account with fresh deposits for a 5-year block (Option C), you can withdraw up to 60% of the balance at the start of that block, taken in yearly installments (once per year). This is per Section 12(4) of the gazette. Note: the 60% is on the balance at the start of the block — new deposits and interest added during the block do not increase this limit.
What is the best date to deposit in PPF?
Between 1 and 5 April. PPF interest is calculated on the lowest balance between the 5th and end of each month. By depositing before the 5th of April, your entire annual contribution earns interest for all 12 months. On ₹1.5 lakh, depositing in April vs December is a difference of roughly ₹9,000–₹10,000 per year.
Can I open more than one PPF account?
No. Only one PPF account per individual across all banks and post offices in India. If a second account is accidentally opened, it earns interest only at the Post Office Savings Account rate — far below the PPF rate — on the balance in the second account.
Is PPF maturity amount taxable?
No. PPF has full EEE tax status: deposits (up to ₹1.5L/yr) get an 80C deduction, interest is tax-free annually, and the maturity amount is completely exempt. This applies under both old and new income tax regimes.
What happens to the PPF account when the account holder dies?
The account must be closed. The nominee or legal heir cannot continue it. The balance, including interest up to the last day of the month preceding payment, is paid out. Any outstanding loan interest is adjusted before the final payment.
Can a PPF account be seized to recover a debt?
No. Section 15 of the PPF Scheme 2019 explicitly protects PPF balances from attachment under any court decree or order, for any debt or liability of the account holder. This protection is absolute.
Can an NRI open a PPF account?
No, NRIs cannot open new PPF accounts. Existing accounts opened as resident Indians can continue to the 15-year maturity at the normal interest rate. Extension (Option C) is not available for NRIs — the account must be closed at maturity.
How is PPF better than a fixed deposit?
On a pre-tax basis, large-bank FDs offer roughly 6.5–7.5% for long tenures. PPF offers 7.1%. The difference becomes large on a post-tax basis: FD interest is taxed at your slab rate (up to 30%), while PPF interest is fully tax-free. At the 30% slab, a 7.1% PPF is equivalent to a 10.1% taxable FD. PPF also offers court-proof protection that FDs do not.
Can I invest in PPF if I have chosen the new tax regime?
Yes. PPF contributions are allowed under both old and new income tax regimes. The difference: under the old regime, contributions up to ₹1,50,000/year qualify for the Section 80C deduction. Under the new regime, that deduction is not available — but the interest and maturity amount remain completely tax-free in both cases. If you are on the new regime without the 80C benefit, PPF still makes sense as a sovereign-guaranteed, tax-free debt instrument — especially compared to FDs, where interest is taxed at your slab rate.
Can I switch from Option B to Option C after PPF matures?
Only within the first year after maturity. Section 11(3) of the PPF Scheme 2019 is explicit: once you have continued without deposits (Option B) for more than 1 year, the option to extend with deposits (Option C) is permanently closed — it cannot be revived.
If you are undecided at the 15-year maturity date, Option B is the safe default — it requires no action, and you can still file Form-4 to switch to Option C at any point during that first year. After 12 months, the window closes permanently.
PPF interest rate history (2015–2026)
The rate has been at 7.1% since April 2020 — unchanged for 6+ years. It peaked near 8.7% in FY 2015-16 before gradually coming down.
| Period | Rate (% p.a.) |
|---|---|
| FY 2026-27 Q1 (Apr–Jun 2026) | 7.1% ✓ |
| FY 2025-26 (all quarters) | 7.1% |
| FY 2024-25 (all quarters) | 7.1% |
| FY 2023-24 (all quarters) | 7.1% |
| FY 2022-23 (all quarters) | 7.1% |
| FY 2021-22 (all quarters) | 7.1% |
| FY 2020-21 (all quarters) | 7.1% |
| FY 2019-20 Q4 (Jan–Mar 2020) | 7.9% |
| FY 2019-20 Q1–Q3 (Apr–Dec 2019) | 8.0% |
| FY 2018-19 Q3–Q4 (Oct 2018–Mar 2019) | 8.0% |
| FY 2018-19 Q1–Q2 (Apr–Sep 2018) | 7.6% |
| FY 2017-18 | 7.6%–7.9% |
| FY 2016-17 | 8.1% |
| FY 2015-16 | 8.7% |
Next rate review: July 2026 (Q2 FY 2026-27). Source: Ministry of Finance quarterly notifications.
All rules on this page are sourced from the Public Provident Fund Scheme 2019, G.S.R. 915(E), notified by the Ministry of Finance (Department of Economic Affairs) on 12 December 2019 under the Government Savings Promotion Act, 1873. This supersedes the earlier PPF Scheme, 1968 (rescinded by G.S.R. 913(E) of the same date). Interest rate verified as 7.1% p.a. for Q1 FY 2026-27. Full gazette text: PPF Scheme 2019 ↗
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