See how ₹50K yearly PPF investment grows at 7.1% across different tenures. All returns are 100% tax-free.
| Year | Deposit | Interest | Balance |
|---|
Investing ₹50K 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 | ₹7,50,000 | ₹6,06,070 | ₹13,56,070 |
| 20 Years | ₹10,00,000 | ₹12,19,429 | ₹22,19,429 |
| 25 Years | ₹12,50,000 | ₹21,86,004 | ₹34,36,004 |
| 30 Years | ₹15,00,000 | ₹36,50,302 | ₹51,50,302 |
| 35 Years | ₹17,50,000 | ₹58,15,949 | ₹75,65,949 |
If you invest ₹50,000 per year in PPF at 7.1% for 15 years, your maturity value will be ₹13,56,070. This includes ₹7,50,000 total deposits and ₹6,06,070 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 ₹15,600 in taxes every year.
To invest ₹50,000 per year in PPF, you need to set aside approximately ₹4,167 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.