Investing ₹10,000 monthly means ₹1,20,000 yearly in PPF. Your 15-year maturity: ₹32,54,569 tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹10,000 per month (totaling ₹1,20,000 per year) in PPF at 7.1% gives you a maturity of ₹32,54,569 after 15 years — all completely tax-free.
| Tenure | Total Deposited | Interest Earned | Maturity Value |
|---|---|---|---|
| 15 Years | ₹18,00,000 | ₹14,54,569 | ₹32,54,569 |
| 20 Years | ₹24,00,000 | ₹29,26,633 | ₹53,26,633 |
| 25 Years | ₹30,00,000 | ₹52,46,415 | ₹82,46,415 |
| 30 Years | ₹36,00,000 | ₹87,60,732 | ₹1,23,60,732 |
| 35 Years | ₹42,00,000 | ₹1,39,58,291 | ₹1,81,58,291 |
If you invest ₹1,20,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹32,54,569. This includes ₹18,00,000 total deposits and ₹14,54,569 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 ₹37,440 in taxes every year.
To invest ₹1,20,000 per year in PPF, you need to set aside approximately ₹10,000 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.