See how ₹12K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹12K 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 | ₹1,80,000 | ₹1,45,455 | ₹3,25,455 |
| 20 Years | ₹2,40,000 | ₹2,92,660 | ₹5,32,660 |
| 25 Years | ₹3,00,000 | ₹5,24,638 | ₹8,24,638 |
| 30 Years | ₹3,60,000 | ₹8,76,068 | ₹12,36,068 |
| 35 Years | ₹4,20,000 | ₹13,95,822 | ₹18,15,822 |
If you invest ₹12,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹3,25,455. This includes ₹1,80,000 total deposits and ₹1,45,455 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 ₹3,744 in taxes every year.
To invest ₹12,000 per year in PPF, you need to set aside approximately ₹1,000 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.