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Project the maturity value of a Public Provident Fund account over its 15-year term.
Formula
Each year’s deposit earns compound interest to maturity: FV = Σ A × (1+r)(n−k+1)
Worked example
Rs 1,50,000 a year (the annual cap) for 15 years at 7.1%: total invested Rs 22,50,000, maturity value ≈ Rs 40,68,209, of which Rs 18,18,209 is tax-free interest.
Quick reference
| Yearly deposit | 15-yr maturity @ 7.1% |
|---|---|
| Rs 50,000 | Rs 13.56 L |
| Rs 1,00,000 | Rs 27.12 L |
| Rs 1,50,000 | Rs 40.68 L |
Interest is fully tax-free (EEE).
Frequently asked questions
What is the PPF contribution limit?
You can deposit between Rs 500 and Rs 1,50,000 per financial year, in up to 12 instalments. Deposits qualify for a Section 80C deduction and the interest and maturity amount are tax-free.
Can I extend PPF after 15 years?
Yes, in blocks of 5 years, with or without further contributions. During an extension you can make one partial withdrawal per year.
How is PPF interest calculated?
Interest is calculated monthly on the lowest balance between the 5th and the last day of the month, and credited once a year on 31 March. To get a full month’s interest, deposit before the 5th.