Why should I deposit money in PPF on or before the 5th of every month?

Under government rules, PPF interest is calculated on the minimum balance maintained in your account between the close of the 5th day and the last day of the month. Depositing after the 5th means you forfeit interest on that deposit for that entire month.

Can I extend my PPF account after 15 years?

Yes, upon completing 15 years, you can extend your PPF account in 5-year blocks indefinitely. You can choose to extend with fresh contributions (by submitting Form H within 1 year of maturity) or extend without making any further contributions while continuing to earn interest.

Can an NRI open a new PPF account?

No, Non-Resident Indians (NRIs) are not eligible to open a new PPF account. However, if a resident Indian opened a PPF account and subsequently became an NRI, the account can continue till its original 15-year maturity on a non-repatriation basis (extensions are not allowed).

GOVERNMENT SAVINGS TOOL

PPF Calculator

Calculate your Public Provident Fund maturity value

PPF Details

Current A/C Balance

Investment Frequency

Monthly Investment

₹500₹12,500

Interest Rate (% p.a.)

Current PPF rate: 7.1%

Investment Duration (Years)

15 Years50 Years

Maturity Amount

₹39,44,599

Investment Breakdown

Total Invested

₹22,50,000

Interest Earned

₹16,94,599

PPF Summary

Investment Frequencymonthly

Monthly Investment₹12,500

Interest Rate7.1% p.a.

Effective Return (XIRR)7.10%

Duration15 years

Total Invested₹22,50,000

Interest Earned₹16,94,599

Maturity Amount₹39,44,599

Tax Benefits: PPF investments qualify for tax deduction under Section 80C up to ₹1.5 Lakh. Interest earned and maturity amount are completely tax-free (EEE status).

FINANCIAL GUIDE

How Does Public Provident Fund (PPF) Work & What Are Its Key Benefits?

The Public Provident Fund (PPF) is a sovereign-backed long-term savings scheme established by the Government of India under the Public Provident Fund Act. It offers absolute capital security and guaranteed tax-free returns.

PPF holds prestigious 'EEE' (Exempt-Exempt-Exempt) tax status: your annual contributions are deductible under Section 80C, annual accrued interest is completely tax-exempt, and the entire maturity amount is 100% tax-free.

The scheme has a mandatory tenure of 15 years, after which the account can be extended indefinitely in blocks of 5 years, with or without making additional contributions.

Public Provident Fund (PPF) Rules & Limits

Parameter	Details & Guidelines
Current Interest Rate	7.1% p.a. (compounded annually; notified quarterly by Finance Ministry).
Deposit Limits	Minimum ₹500/year; Maximum ₹1,50,000 per financial year (in lump sum or installments).
Deposit Deadline	Deposit on or before the 5th of every month to earn interest for that full month.
Account Tenure	15 financial years. Extendable in blocks of 5 years with/without contribution.
Tax Benefit	Section 80C deduction up to ₹1.5 Lakh. Zero tax on interest and maturity (EEE).
Loan & Withdrawal	Loan available from 3rd to 6th FY. Partial withdrawal allowed from 7th FY.

PPF vs Sukanya Samriddhi (SSY) vs EPF

Public Provident Fund (PPF)

Open to all Indian citizens (salaried, self-employed, minor accounts). Sovereign guarantee with 7.1% tax-free yield.

Sukanya Samriddhi Yojana (SSY)

Higher yield (8.2% vs 7.1%), but restricted exclusively to girl children below 10 years of age.

Try SSY Calculator →

Employees' Provident Fund (EPF)

Offers 8.25% interest with employer co-contribution, but restricted exclusively to salaried organized-sector employees.

Try EPF Calculator →