See how ₹2K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹2K 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 | ₹30,000 | ₹24,241 | ₹54,241 |
| 20 Years | ₹40,000 | ₹48,774 | ₹88,774 |
| 25 Years | ₹50,000 | ₹87,437 | ₹1,37,437 |
| 30 Years | ₹60,000 | ₹1,46,008 | ₹2,06,008 |
| 35 Years | ₹70,000 | ₹2,32,632 | ₹3,02,632 |
If you invest ₹2,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹54,241. This includes ₹30,000 total deposits and ₹24,241 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 ₹624 in taxes every year.
To invest ₹2,000 per year in PPF, you need to set aside approximately ₹167 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.