How PPF interest is calculated
PPF interest is worked out monthly on the lowest balance between the 5th and the last day of the month, and added to the account once a year on 31 March. This calculator assumes you deposit the full yearly amount before 5 April, which earns the most.
Balance after year = (Opening balance + Deposit) × (1 + rate)
Key PPF rules
- Tenure: 15 financial years, extendable in blocks of 5 years, with or without new deposits.
- Deposit: ₹500 to ₹1,50,000 a year, in one go or in parts.
- Loan: available from the 3rd to the 6th year.
- Partial withdrawal: allowed from the 7th year.
- Safety: backed by the Government of India.
PPF vs other options
PPF gives guaranteed, tax-free returns, which makes it a strong choice for the safe part of your savings. For higher long-term growth with market risk, compare a mutual fund SIP. For shorter goals, a bank fixed deposit is more flexible.