How this PPF calculator works
The Public Provident Fund (PPF) is one of India's most widely used long-term savings schemes — backed by the government, with a fixed interest rate reviewed every quarter and full tax exemption on top. This calculator projects your PPF balance year by year using the current rate (7.1%), assuming you deposit the same amount at the start of each financial year (the standard convention for a deposit made on or before 5 April, which earns interest for the entire year).
EEE tax status — one of the few fully tax-free investments
PPF enjoys "Exempt-Exempt-Exempt" (EEE) tax treatment, which is rare and valuable:
- Deposit: your annual contribution qualifies for deduction under Section 80C, up to the overall ₹1,50,000 80C limit
- Interest: the interest credited every year is completely exempt from tax
- Maturity: the entire maturity amount you withdraw is also tax-free
No other common instrument — not FDs, not most mutual funds — is tax-free at all three stages, which is a big part of why PPF remains popular despite its 15-year lock-in.
The 15-year lock-in and 5-year extension blocks
A PPF account matures 15 years after the financial year in which it was opened. At maturity, you have three choices: withdraw the full balance and close the account, or extend it in blocks of 5 years — as many times as you like, indefinitely. Extensions come in two modes:
- With further contributions: you keep depositing (subject to the usual annual limits) and the balance keeps compounding on both the old balance and new deposits — you must submit Form H within one year of maturity to opt into this mode.
- Without further contributions: you stop depositing but leave the balance untouched; it continues earning interest at the prevailing rate every year, and you can make one withdrawal per year from it if you choose.
This calculator's 20-year and 25-year tenure options model one and two extension blocks respectively, assuming you continue depositing through each block.
Partial withdrawal and loans
You don't have to wait the full 15 years to access some of your money. From the 7th financial year onward (i.e., after completing 6 years), you can make one partial withdrawal per year, capped at the lower of 50% of the balance at the end of the 4th preceding year or 50% of the balance at the end of the preceding year. Separately, if you need funds earlier, you can take a loan against your PPF balance between the 3rd and 6th financial year — after that window closes, partial withdrawal takes over as the way to access funds instead.
Transferring your account
A PPF account is fully portable — you can transfer it from one bank to another, from a post office to a bank, or vice versa, without losing continuity, tenure, or accumulated balance. This is useful if you relocate or simply prefer a different institution; the account number, interest history and maturity timeline all carry over unchanged.