See how ₹10K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹10K 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 | ₹1,50,000 | ₹1,21,215 | ₹2,71,215 |
| 20 Years | ₹2,00,000 | ₹2,43,888 | ₹4,43,888 |
| 25 Years | ₹2,50,000 | ₹4,37,204 | ₹6,87,204 |
| 30 Years | ₹3,00,000 | ₹7,30,064 | ₹10,30,064 |
| 35 Years | ₹3,50,000 | ₹11,63,196 | ₹15,13,196 |
If you invest ₹10,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹2,71,215. This includes ₹1,50,000 total deposits and ₹1,21,215 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 ₹3,120 in taxes every year.
To invest ₹10,000 per year in PPF, you need to set aside approximately ₹833 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.