See how ₹20K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹20K 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 | ₹3,00,000 | ₹2,42,428 | ₹5,42,428 |
| 20 Years | ₹4,00,000 | ₹4,87,772 | ₹8,87,772 |
| 25 Years | ₹5,00,000 | ₹8,74,403 | ₹13,74,403 |
| 30 Years | ₹6,00,000 | ₹14,60,123 | ₹20,60,123 |
| 35 Years | ₹7,00,000 | ₹23,26,384 | ₹30,26,384 |
If you invest ₹20,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹5,42,428. This includes ₹3,00,000 total deposits and ₹2,42,428 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 ₹6,240 in taxes every year.
To invest ₹20,000 per year in PPF, you need to set aside approximately ₹1,667 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.