PPF Calculator

Why PPF is still one of the best investments in India

PPF is governed by the Public Provident Fund Scheme rules, with the rate set via the Department of Economic Affairs' quarterly small savings rate notification. Its EEE tax status makes its effective post-tax return far higher than comparable fixed-income instruments. For someone in the 30% tax bracket, a 7.1% tax-free yield is equivalent to a ~10.1% pre-tax FD return. Combined with government backing and no market risk, it remains unmatched for long-term conservative savings.

Maximising your PPF returns

• Invest before April 5 — PPF interest is calculated on the minimum balance between the 5th and last day of each month. Depositing before the 5th ensures you earn interest for that full month.
• Invest the maximum ₹1.5L annually — the 80C deduction alone saves ₹46,800/year for 30% taxpayers.
• Open accounts for children — you can open PPF accounts for minor children and invest up to ₹1.5L total across your account and each child's account.
• Extend rather than withdraw — the power of compounding grows exponentially in years 15–30.

PPF at different income levels

For taxpayers in the 30% bracket, ₹1.5 lakh invested in PPF saves ₹46,800 in tax per year under Section 80C, in addition to earning 7.1% tax-free interest. The effective post-tax return is approximately 10.1% on a pre-tax equivalent basis. For those in the 0% bracket (income below ₹12 lakh under the new regime), PPF still offers a sovereign-guaranteed, risk-free 7.1% return — better than most bank FDs on an absolute basis and with superior liquidity at 7-year and 15-year milestones.

PPF for self-employed and business owners

Unlike EPF (Employees' Provident Fund), which is restricted to salaried employees, PPF is open to all Indian citizens including the self-employed, freelancers, and business owners. There is no employer contribution, but the full ₹1.5 lakh limit is available for individual Section 80C savings. PPF is particularly valuable for business owners who lack a corporate pension structure and want a disciplined, tax-efficient long-term savings vehicle.

PPF account nomination and joint accounts

PPF does not allow joint accounts — only one person can be the account holder. However, you can nominate one or more individuals who will receive the balance in case of the account holder's death. The nomination can be changed at any time. Minors cannot operate PPF accounts independently; a parent or guardian opens and manages the account on their behalf. Contributions made to a minor child's account count toward the parent's ₹1.5 lakh annual limit.