Public Provident Fund (PPF) Calculator 2024
Calculate the future value of your PPF investment with the latest 7.1% interest rate for 2024. See how your wealth grows over time with this tax-free government-backed savings scheme that offers EEE (Exempt-Exempt-Exempt) tax benefits.
What is Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is a popular long-term investment scheme backed by the Government of India. It offers an attractive combination of safety, returns, and tax benefits, making it one of the most preferred investment options for risk-averse investors and tax-conscious individuals.
Benefits of Investing in PPF
Government Backed
PPF is backed by the Government of India, making it one of the safest investment options available.
Attractive Returns
PPF offers competitive interest rates (currently 7.1% p.a.) compared to other risk-free investments.
Tax Benefits
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status under Section 80C of the Income Tax Act.
Protection from Creditors
PPF accounts are protected from attachment under court orders or by creditors.
How This Calculator Works
Our PPF Calculator helps you estimate the future value of your PPF investments based on your inputs:
- Initial Investment: The amount you deposit in the first year (minimum ₹500, maximum ₹1,50,000)
- Yearly Contribution: The amount you plan to deposit each year after the initial investment
- Investment Duration: The number of years you plan to invest (minimum 15 years)
- Interest Rate: The annual interest rate (currently 7.1% p.a., compounded annually)
A = Maturity Amount
P = Initial Investment
Y = Yearly Contribution
r = Interest Rate (in decimal)
n = Investment Duration (in years)
If you invest ₹50,000 initially and continue to invest ₹50,000 yearly for 15 years at 7.1% interest rate:
- Total Investment: ₹7,50,000 (₹50,000 × 15)
- Interest Earned: ₹6,77,881
- Maturity Amount: ₹14,27,881
PPF vs Other Investment Options
Compare PPF with other popular investment options to understand why it's considered one of the best tax-saving instruments in India:
| Feature | PPF | Bank FD | ELSS Mutual Funds | NPS |
|---|---|---|---|---|
| Current Returns | 7.1% p.a. | 5-6% p.a. | 10-12% p.a. (market-linked) | 8-10% p.a. (market-linked) |
| Lock-in Period | 15 years | 5 years (tax-saving FD) | 3 years | Until retirement |
| Tax Benefits | EEE (fully tax-free) | EET (interest taxable) | EEE (fully tax-free) | EET (withdrawal partially taxable) |
| Risk Level | Very Low (Govt. backed) | Very Low | Moderate to High | Low to Moderate |
| Liquidity | Partial withdrawal from 7th year | Low (premature withdrawal penalties) | After 3 years | Very Low |
Latest PPF Interest Rate History
The PPF interest rate is reviewed and announced by the government quarterly. Here's how the PPF interest rate has changed in recent years:
| Period | PPF Interest Rate |
|---|---|
| April 2024 - June 2024 | 7.1% |
| January 2024 - March 2024 | 7.1% |
| October 2023 - December 2023 | 7.1% |
| July 2023 - September 2023 | 7.1% |
| April 2023 - June 2023 | 7.1% |
Frequently Asked Questions About PPF
Get answers to the most common questions about Public Provident Fund (PPF) accounts, interest calculations, tax benefits, and more.
PPF interest is calculated on the lowest balance between the 5th and the last day of each month. The current interest rate is 7.1% per annum (compounded annually). The interest is credited to the account at the end of each financial year on March 31st.
For example, if you deposit ₹10,000 on the 10th of a month and another ₹5,000 on the 20th, the interest for that month will be calculated on ₹10,000 (the lowest balance between the 5th and the last day).
The PPF account has a lock-in period of 15 years. After the completion of 15 years, you can either withdraw the entire amount or extend the account in blocks of 5 years. Partial withdrawals are allowed from the 7th year onwards.
During the extension period, you can continue to make deposits (subject to the annual limit) or choose to keep the account active without making any further deposits.
Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. This means:
- Exempt: The investment amount is eligible for tax deduction under Section 80C (up to ₹1.5 lakh)
- Exempt: The interest earned is tax-free
- Exempt: The maturity amount is also exempt from tax
This triple tax benefit makes PPF one of the most tax-efficient investment options available in India.
Yes, partial withdrawals from a PPF account are allowed from the 7th financial year onwards. The maximum amount you can withdraw is either 50% of the balance at the end of the 4th year preceding the year of withdrawal or 50% of the balance at the end of the immediately preceding year, whichever is lower.
For example, if you want to make a withdrawal in the 7th year, you can withdraw up to 50% of the balance at the end of the 3rd year.
No, an individual can have only one PPF account in their name. However, you can open a PPF account in the name of your minor children (as a guardian) in addition to your own account. The combined limit for investment across all accounts (including minor accounts) remains ₹1,50,000 per financial year.
If you are found to have multiple PPF accounts in your name, all accounts except the first one may be closed, and you might lose the interest earned on those accounts.
PPF is generally considered better than Fixed Deposits (FDs) for long-term tax-saving investments due to several advantages:
- Higher Returns: PPF currently offers 7.1% interest rate compared to 5-6% for most bank FDs
- Tax Benefits: PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, meaning the investment, interest, and maturity amount are all tax-free. In contrast, interest earned on FDs is taxable
- Government Backing: PPF is backed by the Government of India, making it one of the safest investment options
- Compounding Benefits: The long-term nature of PPF (15 years) allows for significant compounding benefits
However, FDs are better for short-term goals due to their higher liquidity and shorter lock-in periods.
If you don't make any deposits in your PPF account for a year:
- Your account becomes irregular but remains active
- You'll continue to earn interest on the existing balance
- To regularize the account, you need to pay a penalty of ₹50 per year of default along with the minimum required deposit of ₹500
- The maturity period remains the same (15 years from the date of opening)
It's advisable to make at least the minimum deposit of ₹500 each financial year to keep your account regular and avoid penalties.
PPF (Public Provident Fund) and EPF (Employee Provident Fund) differ in several key aspects:
| Feature | PPF | EPF |
|---|---|---|
| Eligibility | Available to all Indian residents | Only for salaried employees |
| Contribution | Voluntary (₹500 to ₹1,50,000 per year) | Mandatory (12% of basic salary by employee and employer) |
| Interest Rate | 7.1% p.a. (reviewed quarterly) | 8.15% p.a. (for 2023-24) |
| Lock-in Period | 15 years | Until retirement or job change |
| Tax Benefits | EEE (fully tax-free) | EEE (tax-free if withdrawn after 5 years of service) |
Both PPF and EPF are excellent retirement planning tools with government backing and tax benefits. Ideally, you should maximize both if possible.
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