See how ₹90K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹90K 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 | ₹13,50,000 | ₹10,90,925 | ₹24,40,925 |
| 20 Years | ₹18,00,000 | ₹21,94,972 | ₹39,94,972 |
| 25 Years | ₹22,50,000 | ₹39,34,807 | ₹61,84,807 |
| 30 Years | ₹27,00,000 | ₹65,70,543 | ₹92,70,543 |
| 35 Years | ₹31,50,000 | ₹1,04,68,711 | ₹1,36,18,711 |
If you invest ₹90,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹24,40,925. This includes ₹13,50,000 total deposits and ₹10,90,925 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 ₹28,080 in taxes every year.
To invest ₹90,000 per year in PPF, you need to set aside approximately ₹7,500 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.