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Plan your retirement with the Public Provident Fund (PPF) calculator. Estimate tax-free returns and maturity value for India’s safest government-backed EEE investment scheme.
A safe, government-backed long term investment with tax-free returns.
Total Investment
₹22.50 Lakh
Interest Earned
₹16.95 Lakh
Maturity Value
After 15 Years
₹39.45 Lakh
Visualizing how your principal amount and interest grow over time.
The Public Provident Fund (PPF) is arguably the best long-term savings tool for Indian citizens. It is backed by the Government of India, making it completely risk-free. Its primary attraction is the EEE status: your investment is tax-deductible, the interest earned is tax-free, and the final maturity amount is also tax-free.
PPF has a 15-year lock-in period, which is its greatest strength. It forces long-term discipline. By compounding interest annually, a small contribution can grow into a significant retirement corpus over 15 to 25 years (with 5-year extensions).
To maximize your PPF returns, always try to deposit your annual contribution between April 1st and April 5th. This ensures you earn interest for the entire financial year on your new deposit, as the interest is calculated on the minimum balance between the 5th and the end of the month.
Q: Why is the 5th of every month critical for PPF investors?
In a Public Provident Fund (PPF), interest is calculated on the minimum balance in your account between the 5th and the end of the month. If you deposit after the 5th, you lose out on interest for that entire month. To maximize your tax-free returns, always ensure your PPF contribution is credited before the 5th of April (for the whole year) or by the 5th of every month (if paying monthly).
Q: What is the 'EEE' tax status and why is it so rare?
PPF enjoys the rare 'Exempt-Exempt-Exempt' status. This means: 1) Your investment is exempt from tax (under 80C), 2) The interest earned every year is exempt from tax, and 3) The final maturity amount is exempt from tax. Most other investments (like FDs or Mutual Funds) are taxed at either the interest stage or the withdrawal stage. This makes PPF one of the most powerful risk-free debt instruments in an Indian investor's portfolio.
Q: Can I extend my PPF account beyond the initial 15-year maturity?
Yes, you can extend your PPF account indefinitely in blocks of 5 years. You have two options: 'Extension with contribution' (where you continue to invest and earn tax benefits) or 'Extension without contribution' (where your existing balance continues to earn interest but you don't need to put in more money). You must notify the bank/post office about your choice within one year of the account's maturity to keep it active.
Q: Is it possible to take a loan against my PPF balance?
Yes, you can take a loan from your PPF account from the 3rd to the 6th financial year of opening the account. The loan amount can be up to 25% of the balance at the end of the 2nd preceding year. The interest charged on this loan is typically 1% above the prevailing PPF interest rate. This can be a useful source of low-cost funds for temporary needs without needing to break your long-term investment.
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