PPF (Public Provident Fund) is a long-term, government-backed savings scheme in India offering tax-free interest and a mandatory minimum lock-in period of 15 years. It's popular for retirement savings and tax planning since contributions (up to โน1.5 lakh/year) qualify for tax deduction under Section 80C, and both the interest earned and the maturity amount are completely tax-free โ a rare combination in Indian tax-advantaged instruments.
The interest rate is set by the government and revised quarterly, so the rate you use for projection is an assumption based on current rates โ actual returns over a 15+ year period will reflect whatever rates are in effect during each compounding year, which may differ from today's rate.
Partial withdrawals are allowed starting from the 7th year under specific conditions and limits set by PPF rules. Full withdrawal without penalty is only available at maturity (15 years), though the account can also be extended in blocks of 5 years after maturity.
No โ the government revises the PPF interest rate quarterly based on economic conditions. This calculator uses a single rate you enter as an estimate; actual returns will reflect whatever rates apply during each period of the real 15+ year tenure.
No โ PPF is one of the few 'EEE' (Exempt-Exempt-Exempt) instruments in India: contributions are tax-deductible under 80C, interest earned is tax-free, and the maturity amount is also tax-free.