See how ₹3K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹3K 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 | ₹45,000 | ₹36,363 | ₹81,363 |
| 20 Years | ₹60,000 | ₹73,165 | ₹1,33,165 |
| 25 Years | ₹75,000 | ₹1,31,159 | ₹2,06,159 |
| 30 Years | ₹90,000 | ₹2,19,017 | ₹3,09,017 |
| 35 Years | ₹1,05,000 | ₹3,48,955 | ₹4,53,955 |
If you invest ₹3,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹81,363. This includes ₹45,000 total deposits and ₹36,363 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 ₹936 in taxes every year.
To invest ₹3,000 per year in PPF, you need to set aside approximately ₹250 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.