Investing ₹3,000 monthly means ₹36,000 yearly in PPF. Your 15-year maturity: ₹9,76,368 tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹3,000 per month (totaling ₹36,000 per year) in PPF at 7.1% gives you a maturity of ₹9,76,368 after 15 years — all completely tax-free.
| Tenure | Total Deposited | Interest Earned | Maturity Value |
|---|---|---|---|
| 15 Years | ₹5,40,000 | ₹4,36,368 | ₹9,76,368 |
| 20 Years | ₹7,20,000 | ₹8,77,986 | ₹15,97,986 |
| 25 Years | ₹9,00,000 | ₹15,73,919 | ₹24,73,919 |
| 30 Years | ₹10,80,000 | ₹26,28,212 | ₹37,08,212 |
| 35 Years | ₹12,60,000 | ₹41,87,478 | ₹54,47,478 |
If you invest ₹36,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹9,76,368. This includes ₹5,40,000 total deposits and ₹4,36,368 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 ₹11,232 in taxes every year.
To invest ₹36,000 per year in PPF, you need to set aside approximately ₹3,000 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.