See how ₹1.5 Lakh yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹1.5 Lakh per year in PPF gives you access to guaranteed, tax-free returns. Here's how your investment grows across different tenures:
| Tenure | Total Deposited | Interest Earned | Maturity Value |
|---|---|---|---|
| 15 Years | ₹22,50,000 | ₹18,18,208 | ₹40,68,208 |
| 20 Years | ₹30,00,000 | ₹36,58,287 | ₹66,58,287 |
| 25 Years | ₹37,50,000 | ₹65,58,012 | ₹1,03,08,012 |
| 30 Years | ₹45,00,000 | ₹1,09,50,907 | ₹1,54,50,907 |
| 35 Years | ₹52,50,000 | ₹1,74,47,853 | ₹2,26,97,853 |
If you invest ₹1,50,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹40,68,208. This includes ₹22,50,000 total deposits and ₹18,18,208 in tax-free interest.
Deposits up to ₹1,50,000 per year qualify for Section 80C deduction. If you are in the 31.2% tax bracket (highest old regime), you can save approximately ₹46,800 in taxes every year.
To invest ₹1,50,000 per year in PPF, you need to set aside approximately ₹12,500 per month. You can make deposits in up to 12 installments per financial year.
After the initial 15-year lock-in, you can either withdraw the entire amount tax-free, or extend it in blocks of 5 years (with or without fresh contributions). The extended period also earns the prevailing PPF interest rate.
At 7.1% tax-free return, PPF significantly outperforms FDs for long-term investment. A comparable FD would need to offer 10.3% pre-tax returns (for 31.2% tax bracket) to match PPF's after-tax return. Over 15 years, this compounding advantage is substantial.