PPF Account Explained
The Public Provident Fund (PPF) is a government-backed long-term savings scheme. Here are the main rules and how to estimate your maturity amount.
Key rules in simple words
- Lock-in: 15 years. After that you can extend the account in blocks of 5 years.
- Yearly limit: you can deposit up to ₹1,50,000 in a financial year.
- Interest rate: set by the government and announced every quarter, so it can change. Always check the current rate.
- Interest timing: calculated on monthly balances and added to the account once a year.
A worked example
Deposit the same amount early in each year for 15 years at an assumed 7.1% a year. These are estimates from the simple yearly method used in our PPF Calculator.
| Yearly deposit | You deposit in 15 years | Estimated maturity value |
|---|---|---|
| ₹50,000 | ₹7.5 lakh | about ₹13.56 lakh |
| ₹1,00,000 | ₹15 lakh | about ₹27.12 lakh |
| ₹1,50,000 | ₹22.5 lakh | about ₹40.68 lakh |
Why your passbook may differ
PPF interest is worked out on the lowest balance between the 5th and the end of each month, and the rate may change during the 15 years. Depositing before the 5th of the month helps you earn interest for that month. Because of this, the real maturity value can differ from a simple estimate.
Compare with other savings options
For a bank deposit, see the FD Calculator and RD Calculator. Tax treatment depends on your tax regime, so check the current rules or ask a tax professional.
Note: Results are estimates for learning and planning. They are not financial, tax or investment advice, and actual figures from your bank or lender may differ. See our disclaimer.
Frequently asked questions
Can I withdraw from PPF before 15 years?
The scheme allows limited partial withdrawals after some years and loans in early years, under its rules. Check the current rules with your bank or post office.
Is the PPF rate fixed for 15 years?
No. The government reviews it every quarter.
Can I deposit less than the limit?
Yes. You can deposit any amount up to the yearly limit, subject to the minimum amount the scheme requires every year.