PPF Calculator India
2026

The PPF interest rate for Q1 FY 2026-27 (April-June 2026) is 7.1% per annum, compounded annually. This rate has remained unchanged for 13 consecutive quarters since April 2023. The government reviews PPF rates quarterly based on the 10-year G-sec yield, but has not changed it despite bond yield movements. At 7.1%, a Rs 2,00,000 annual deposit for 15 years gives a maturity of Rs 54,27,612.

PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each month, but compounded annually. Interest is credited to your account on March 31 each year. This means if you deposit Rs 2,00,000 on April 6 instead of April 4, you lose one full month of interest (Rs 1,183) because the April balance used for calculation will be the pre-deposit amount. Over 15 years, this single timing mistake compounds to Rs 18,000-22,000 lost.

Budget 2026 increased the PPF annual deposit limit from Rs 1,50,000 to Rs 2,00,000 — the first increase since 2014. The minimum deposit remains Rs 500 per year. You can deposit in lump sum or up to 12 installments per year. Depositing the full Rs 2,00,000 as a lump sum before April 5 earns approximately Rs 1,06,000 more over 15 years compared to monthly deposits on the 15th of each month.

Yes, mathematically. Depositing Rs 2,00,000 as a lump sum before April 5 gives your entire amount 12 months of interest in the first year. Monthly deposits mean later installments earn fewer months of interest. At 7.1% over 15 years: lump sum on April 1 = approximately Rs 55,33,000 maturity vs monthly on 15th = approximately Rs 53,72,000. Thats Rs 1,61,000 difference on the same total investment. However, if you dont have Rs 2L upfront, monthly deposits are better than not investing at all.

Partial withdrawal is allowed from the 5th financial year onwards (Budget 2026 reduced this from 7th year). Maximum withdrawal: 50% of the balance at the end of the 4th year preceding withdrawal or the preceding year, whichever is lower. Only one partial withdrawal per financial year. Premature closure (full withdrawal) is allowed after 5 years only for medical emergencies or higher education, with a 1% interest rate penalty backdated to account opening.

At maturity (15 years), you have three options: (1) Withdraw the entire amount tax-free. (2) Extend in 5-year blocks WITH contributions — you can withdraw up to 60% of the balance at the start of each block. (3) Extend WITHOUT contributions — the existing balance continues earning 7.1% interest, and you can withdraw any amount anytime. Option 3 is popular for retirees who want tax-free growth without commitment. Extension requests must be filed within 1 year of maturity.

PPF contributions do NOT qualify for Section 80C deduction under the new tax regime, so you lose the Rs 2,00,000 tax deduction benefit. However, the interest earned and maturity amount remain fully tax-free (EEE status) even under the new regime. PPFs value shifts from tax saver to safe compounder — a guaranteed 7.1% tax-free return with zero risk. Compare: a bank FD at 7% in the 30% tax bracket gives you only 4.9% post-tax. PPFs 7.1% fully tax-free still wins.

PPF wins at every tax bracket. PPF: 7.1% tax-free (EEE). FD at 7.5%: effective yield is 5.25% (30% bracket), 6.0% (20% bracket), or 7.12% (5% bracket). Only in the 5% bracket does FD come close to PPF. Over 15 years with Rs 2,00,000 annual investment: PPF gives Rs 54.3L tax-free, while FD gives Rs 46.1L after tax (30% bracket). Thats Rs 8.2 lakh more from PPF. The tradeoff: FD has no lock-in, PPF locks you in for 15 years.

Yes. PPF loan is available from the 3rd year to the 6th year of the account. Maximum loan: 25% of the balance at the end of the 2nd preceding financial year. Interest rate: just 1% per annum if repaid within 36 months, or 6% if not. This makes PPF loans the cheapest credit available in India — far cheaper than personal loans (12-18%) or even gold loans (7-9%). The loan amount is deducted from your PPF balance and added back when you repay.

NRIs cannot open new PPF accounts but can continue existing ones until maturity (15 years). After maturity, NRIs cannot extend — they must close the account and withdraw. The proceeds can only go to an NRO account. If the bank is not informed of NRI status, the account may continue earning 7.1%, but if informed, some banks reduce interest to the Post Office Savings Account rate (4%). Always keep your residential status updated to avoid complications during closure.

The PPF account closes immediately upon the holders death, regardless of remaining tenure. If a nominee is registered (Form E), they can claim the balance within 15-30 days by submitting Form G and the death certificate. Without nomination, legal heirs must obtain a succession certificate from court — costing Rs 5,000-20,000 and taking 6-18 months. In 2024, over 12,000 PPF claims were delayed due to missing nominations. Update your nomination today — it takes 5 minutes at the bank.

If you miss the minimum Rs 500 deposit in any year, your PPF account becomes inactive. You cannot take loans, make partial withdrawals, or deposit until revival. Revival requires: Rs 500 arrear deposit per missed year + Rs 50 penalty per missed year + current years minimum deposit. Must be done at the branch in person — no online process at most banks. Critical: an inactive account cannot be revived after it reaches 15-year maturity. It can only be closed with whatever balance remains.