PPF at a Glance — 2026 Rules
| Feature | Details |
|---|---|
| Interest Rate | 7.1% p.a. (reviewed quarterly by Govt) |
| Minimum Investment | ₹500/year (₹500 per transaction) |
| Maximum Investment | ₹1,50,000/year (single account) |
| Lock-in Period | 15 years (extendable in 5-year blocks) |
| Tax Status | EEE — Exempt-Exempt-Exempt |
| Interest Calculation | On lowest balance between 5th-31st of month |
| Where to Open | Post offices, SBI, nationalised banks, authorised private banks |
| Number of Accounts | One per person (can have one for minor child) |
PPF vs FD vs ELSS — Definitive Comparison
| Feature | PPF | Tax Saver FD | ELSS |
|---|---|---|---|
| Returns | 7.1% (guaranteed) | 6.5–7.5% (taxable) | 12–15% (historical, variable) |
| Lock-in | 15 years | 5 years | 3 years |
| 80C Benefit | Yes | Yes | Yes |
| Interest Tax | Fully tax-free | Fully taxable | LTCG 12.5% above ₹1.25L |
| Maturity Tax | Fully tax-free | Fully taxable | LTCG 12.5% above ₹1.25L |
| Risk | Zero | Zero | Market risk |
| Partial Withdrawal | From Year 7 | No (FD broken) | No (per SIP unit) |
The "Invest on 1st of Month" PPF Hack
PPF interest is calculated on the lowest balance between the 5th and last day of each month. This means if you invest ₹1,50,000 on April 1st, you earn interest on full ₹1,50,000 for April. If you invest on April 6th, you earn zero interest for April on that amount.
Investing ₹1,50,000 on April 1st vs April 6th over 15 years = approximately ₹40,000–₹60,000 difference in maturity amount.
PPF Maturity Scenarios
| Annual Investment | 15 Years | 20 Years | 25 Years |
|---|---|---|---|
| ₹50,000 | ₹13.8L | ₹21.6L | ₹34.3L |
| ₹1,00,000 | ₹27.6L | ₹43.2L | ₹68.7L |
| ₹1,50,000 | ₹41.4L | ₹64.8L | ₹1.03Cr |
💰 Calculate Your PPF Maturity
Use PPF Calculator →Q: Can I withdraw from PPF before 15 years?
Partial withdrawal is allowed from Year 7 onwards — up to 50% of balance at end of 4th year or 50% of balance at end of previous year, whichever is lower. Full premature closure is allowed only in exceptional circumstances (critical illness, higher education, NRI status change) after 5 years.
Q: What happens to PPF after 15 years?
You have 3 options: (1) Close and withdraw the full amount tax-free, (2) Extend for 5-year blocks with continued contributions (best option if still earning), (3) Extend for 5-year blocks without contributions (balance continues earning 7.1% interest tax-free, partial withdrawals allowed).
⚠️ Disclaimer
For educational purposes only. Consult a certified financial advisor for personalised advice.