What is the current PPF interest rate?

The PPF interest rate is 7.1% per annum compounded annually, reviewed and announced by the Government of India every quarter. Interest is credited at the end of each financial year on the minimum balance held between the 5th and last day of each month.

What is the lock-in period? Can I withdraw early?

PPF has a 15-year lock-in period. Partial withdrawal is allowed from the 7th financial year onwards (up to 50% of the balance at the end of the 4th preceding year). Full premature closure is permitted only from the 5th year in specific cases — serious illness, higher education funding, or change of residency status.

How does Section 80C deduction work with PPF?

Your annual PPF contribution up to ₹1.5 lakh is deductible from your taxable income under Section 80C of the Income Tax Act. If you fall in the 30% tax slab, contributing the full ₹1.5 lakh can save you up to ₹45,000 in income tax every year. The Section 80C cap of ₹1.5 lakh is shared across all eligible instruments (PPF, EPF, ELSS, life insurance premium, etc.).

Can I extend my PPF account after 15 years?

Yes — once the 15-year lock-in completes, you can extend your PPF account in blocks of 5 years any number of times. Extension can be done either with continued contributions (and continued 80C benefit) or without further contributions (the balance keeps earning interest tax-free). You must submit Form H within one year of maturity if you want to extend with contributions.

Is PPF interest taxable?

No — PPF enjoys the EEE (Exempt-Exempt-Exempt) tax treatment, which is among the most tax-efficient long-term savings options in India. The contribution is deductible under Section 80C, the interest earned every year is exempt from tax, and the final maturity amount is also fully tax-free in your hands.

PPF Calculator — PPF Maturity & Interest Calculator (7.1%)

PPF

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PPF Calculator

Calculate Public Provident Fund (PPF) maturity amount with 15-year lock-in, current 7.1% interest rate, and annual contribution up to ₹1.5 lakh. Tracks Section 80C deduction and year-by-year balance.

Reviewed by the CalculatorKosh Editorial TeamUpdated June 2026Free · No sign-up

PPF Details

Annual Investment

₹

₹500₹1.5 L

Min ₹500 · Max ₹1,50,000 (statutory cap)

Interest Rate (% p.a.)

4%12%

Tenure (Years)

yrs

15 yrs50 yrs

Lock-in: 15 years. Extendable in 5-year blocks.

Investment Frequency

Drag sliders to explore different scenarios

Interest Rate7.1%

4%12%

Tenure15 yrs

15 yrs50 yrs

What-If Maturity Amount

₹40,68,209

Maturity Amount

₹40,68,209

Total invested: ₹22,50,000 · Total interest: ₹18,18,209 · Tax saved (assumed 30% slab): ₹6,75,000

Total Invested

₹22.5 L

Total Interest

₹18.2 L

Invested vs Interest44.7% from interest

Invested ₹22,50,000Interest ₹18,18,209

Principal vs Interest over time

Drag sliders to explore different scenarios

Interest Rate7.1%

4%12%

Tenure15 yrs

15 yrs50 yrs

What-If Maturity Amount

₹40,68,209

How It Works

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme launched by the Government of India to encourage disciplined long-term saving and offer a safe, tax-advantaged retirement-oriented product. It has a 15-year lock-in, a current interest rate of 7.1% per annum (reviewed quarterly by the Govt), and is one of the few instruments in India that enjoys EEE (Exempt-Exempt-Exempt) tax treatment.

PPF compounding formula

balance_n = (balance_n−1 + contribution) × (1 + r)

Where r = annual interest rate (e.g. 0.071 for 7.1%). Interest is technically calculated on the minimum balance between the 5th and last day of each month, but credited only at year-end — this simplified annual-credit model matches every consumer PPF calculator and the maturity tables published by SBI and India Post.

Why PPF still matters in 2026

Even with the rise of mutual funds and equity SIPs, PPF remains a foundational debt allocation for most Indian savers: 100% sovereign-backed, fully tax-free returns, immune to market drawdowns, and a built-in Section 80C deduction. The 7.1% rate is meaningfully higher than most bank fixed deposits on a post-tax basis (an FD at 7.5% in the 30% slab nets only ~5.25%, while PPF nets the full 7.1%).

Extension after 15 years

Once your 15-year lock-in ends, you can extend the account in blocks of 5 years — with or without further contributions. Extending with contributions keeps the 80C benefit alive and continues compounding at the prevailing rate; extending without contributions still lets the balance compound tax-free until you choose to withdraw.

Frequently Asked Questions

Public Provident Fund (PPF) is a long-term government-backed savings scheme in India with a 15-year lock-in, currently earning 7.1% annual interest compounded yearly. Contributions up to ₹1.5 lakh per year qualify for Section 80C deduction, and both the interest earned and the maturity amount are tax-free under the EEE (Exempt-Exempt-Exempt) tax treatment. You can open a PPF account at any major bank or post office.