See how ₹25K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹25K 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 | ₹3,75,000 | ₹3,03,036 | ₹6,78,036 |
| 20 Years | ₹5,00,000 | ₹6,09,717 | ₹11,09,717 |
| 25 Years | ₹6,25,000 | ₹10,93,005 | ₹17,18,005 |
| 30 Years | ₹7,50,000 | ₹18,25,155 | ₹25,75,155 |
| 35 Years | ₹8,75,000 | ₹29,07,980 | ₹37,82,980 |
If you invest ₹25,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹6,78,036. This includes ₹3,75,000 total deposits and ₹3,03,036 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 ₹7,800 in taxes every year.
To invest ₹25,000 per year in PPF, you need to set aside approximately ₹2,083 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.