See how ₹1 Lakh yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹1 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 | ₹15,00,000 | ₹12,12,139 | ₹27,12,139 |
| 20 Years | ₹20,00,000 | ₹24,38,858 | ₹44,38,858 |
| 25 Years | ₹25,00,000 | ₹43,72,008 | ₹68,72,008 |
| 30 Years | ₹30,00,000 | ₹73,00,605 | ₹1,03,00,605 |
| 35 Years | ₹35,00,000 | ₹1,16,31,901 | ₹1,51,31,901 |
If you invest ₹1,00,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹27,12,139. This includes ₹15,00,000 total deposits and ₹12,12,139 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 ₹31,200 in taxes every year.
To invest ₹1,00,000 per year in PPF, you need to set aside approximately ₹8,333 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.