Question 1

What is the PPF interest rate in 2026?

Accepted Answer

The current PPF interest rate is 7.1% per annum, effective from April 2020. The rate is revised quarterly by the Government of India. Interest is compounded annually and credited on March 31 each year.

Question 2

How much will ₹1.5 lakh PPF give in 15 years?

Accepted Answer

Investing ₹1,50,000 per year in PPF for 15 years at 7.1% interest rate will give a maturity amount of approximately ₹40.68 lakhs. This includes ₹22.5 lakhs invested and ₹18.18 lakhs in interest. The entire amount is tax-free.

Question 3

Is PPF better than FD for tax saving?

Accepted Answer

Yes, PPF is generally better than FD for tax saving. PPF offers EEE tax status (investment, interest, and maturity all tax-free), while FD interest is fully taxable. At 30% tax bracket, PPF's effective yield is 7.1% vs FD's effective yield of ~4.9% on a 7% FD.

Question 4

Can I withdraw PPF before 15 years?

Accepted Answer

Partial withdrawals are allowed from year 7 onwards — up to 50% of balance at end of 4th year or previous year, whichever is lower. Full premature closure is allowed only in specific cases (medical emergency, higher education) after 5 years, with 1% interest penalty.

Question 5

What is the maximum PPF investment per year?

Accepted Answer

Maximum PPF investment is ₹1,50,000 per financial year (April to March). This entire amount qualifies for Section 80C tax deduction. Minimum investment is ₹500 per year. You can invest in lump sum or up to 12 installments per year.

Question 6

Is PPF safe?

Accepted Answer

Yes, PPF is one of the safest investments in India. It is backed by the Government of India, so there is zero default risk. Returns are guaranteed by the government. PPF accounts cannot be attached by courts except for income tax dues.

Year	Opening	Deposit	Interest	Closing
1	₹0	₹1,50,000	₹10,650	₹1,60,650
2	₹1,60,650	₹1,50,000	₹22,056	₹3,32,706
3	₹3,32,706	₹1,50,000	₹34,272	₹5,16,978
4	₹5,16,978	₹1,50,000	₹47,355	₹7,14,334
5	₹7,14,334	₹1,50,000	₹61,368	₹9,25,701
6	₹9,25,701	₹1,50,000	₹76,375	₹11,52,076
7	₹11,52,076	₹1,50,000	₹92,447	₹13,94,524
8	₹13,94,524	₹1,50,000	₹1,09,661	₹16,54,185
9	₹16,54,185	₹1,50,000	₹1,28,097	₹19,32,282
10	₹19,32,282	₹1,50,000	₹1,47,842	₹22,30,124
11	₹22,30,124	₹1,50,000	₹1,68,989	₹25,49,113
12	₹25,49,113	₹1,50,000	₹1,91,637	₹28,90,750
13	₹28,90,750	₹1,50,000	₹2,15,893	₹32,56,643
14	₹32,56,643	₹1,50,000	₹2,41,872	₹36,48,515
15	₹36,48,515	₹1,50,000	₹2,69,695	₹40,68,209

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