See how ₹30K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹30K 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 | ₹4,50,000 | ₹3,63,638 | ₹8,13,638 |
| 20 Years | ₹6,00,000 | ₹7,31,651 | ₹13,31,651 |
| 25 Years | ₹7,50,000 | ₹13,11,594 | ₹20,61,594 |
| 30 Years | ₹9,00,000 | ₹21,90,169 | ₹30,90,169 |
| 35 Years | ₹10,50,000 | ₹34,89,553 | ₹45,39,553 |
If you invest ₹30,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹8,13,638. This includes ₹4,50,000 total deposits and ₹3,63,638 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 ₹9,360 in taxes every year.
To invest ₹30,000 per year in PPF, you need to set aside approximately ₹2,500 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.