Invest ₹20K yearly in PPF at 7.1% and get ₹8,87,772 tax-free at maturity. That's ₹4,87,772 in interest earned.
| Year | Deposit | Interest | Balance |
|---|
If you invest ₹20K per year (approximately ₹1,667/month) in PPF at the current rate of 7.1%, your investment will grow to ₹8,87,772 in 20 years.
| 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 |
| Yearly Deposit | Total Deposited | Interest Earned | Maturity Value |
|---|---|---|---|
| ₹500/yr | ₹10,000 | ₹12,198 | ₹22,198 |
| ₹1,000/yr | ₹20,000 | ₹24,388 | ₹44,388 |
| ₹2,000/yr | ₹40,000 | ₹48,774 | ₹88,774 |
| ₹3,000/yr | ₹60,000 | ₹73,165 | ₹1,33,165 |
| ₹5,000/yr | ₹1,00,000 | ₹1,21,941 | ₹2,21,941 |
| ₹10,000/yr | ₹2,00,000 | ₹2,43,888 | ₹4,43,888 |
| ₹12,000/yr | ₹2,40,000 | ₹2,92,660 | ₹5,32,660 |
| ₹15,000/yr | ₹3,00,000 | ₹3,65,832 | ₹6,65,832 |
| ₹20,000/yr | ₹4,00,000 | ₹4,87,772 | ₹8,87,772 |
| ₹25,000/yr | ₹5,00,000 | ₹6,09,717 | ₹11,09,717 |
| ₹30,000/yr | ₹6,00,000 | ₹7,31,651 | ₹13,31,651 |
| ₹40,000/yr | ₹8,00,000 | ₹9,75,547 | ₹17,75,547 |
| ₹50,000/yr | ₹10,00,000 | ₹12,19,429 | ₹22,19,429 |
| ₹60,000/yr | ₹12,00,000 | ₹14,63,315 | ₹26,63,315 |
| ₹70,000/yr | ₹14,00,000 | ₹17,07,199 | ₹31,07,199 |
| ₹80,000/yr | ₹16,00,000 | ₹19,51,081 | ₹35,51,081 |
| ₹90,000/yr | ₹18,00,000 | ₹21,94,972 | ₹39,94,972 |
| ₹1,00,000/yr | ₹20,00,000 | ₹24,38,858 | ₹44,38,858 |
| ₹1,20,000/yr | ₹24,00,000 | ₹29,26,633 | ₹53,26,633 |
| ₹1,50,000/yr | ₹30,00,000 | ₹36,58,287 | ₹66,58,287 |
If you invest ₹20,000 per year in PPF at 7.1% for 20 years, your maturity value will be ₹8,87,772. This includes ₹4,00,000 total deposits and ₹4,87,772 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.
A 20-year PPF investment means extending beyond the initial 15-year lock-in in 5-year blocks. After maturity, you can withdraw the full amount tax-free or continue extending in 5-year blocks.
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 20 years, this compounding advantage is substantial.