PPF Key Rules
PPF account can be opened with any bank or post office. Minimum deposit ₹500/year, maximum ₹1.5 lakh/year. Interest is compounded annually and credited on March 31. Partial withdrawal allowed after 7 years. Loan facility available from 3rd to 6th year.
📝 Worked Example
Inputs: Annual deposit ₹1,50,000 · Rate 7.1% · Duration 15 years
| Year | Opening Balance | Deposit | Interest (7.1%) | Closing Balance |
|---|---|---|---|---|
| 1 | ₹0 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 | ₹1,60,650 | ₹1,50,000 | ₹22,056 | ₹3,32,706 |
| … | continues for 15 years… | |||
| 15 | Total Invested: ₹22,50,000 | ≈ ₹40,68,209 | ||
💡 PPF is EEE — deposits qualify for 80C, interest is tax-free, maturity is tax-free.
When is PPF interest calculated?
PPF interest is calculated on the minimum balance between the 5th and last day of each month. Deposits made before the 5th earn interest for that month. Ideal to deposit before April 5th each year.
⚠️ Disclaimer: PPF rates are revised by the Government of India each quarter. Rate shown is FY 2024-25. Verify at India Post or your bank. Source: Ministry of Finance, NSSF.
Last Updated: June 2025 · Reviewed by Wolf Office Tools Editorial Team