What is the current PPF interest rate in India?

The Public Provident Fund (PPF) interest rate is set by the Ministry of Finance quarterly. Currently, the rate is 7.1% per annum, compounded annually.

How is PPF interest calculated on monthly deposits?

PPF interest is calculated monthly on the lowest balance between the 5th day and the last day of each month, but interest is credited to the account annually on March 31st.

Can PPF account be extended after 15 years?

Yes, after the initial 15-year maturity, PPF accounts can be extended indefinitely in blocks of 5 years, with or without making fresh contributions.

₹1 Lakh Annual Investment • 100% Tax-Free

₹1 Lakh per Year PPF Maturity Calculator

Contributing ₹1,00,000 every financial year into your PPF account creates a disciplined, risk-free compounding engine. With the current Government of India interest rate of 7.1% p.a. (compounded annually), your total deposit of ₹15,00,000 over 15 years earns ₹12,12,139 in tax-exempt interest, yielding a guaranteed maturity corpus of ₹27.12 Lakhs.

15-Yr Tax-Free Corpus₹27.12 L(at 7.1% p.a. sovereign)

Contribution

₹1 Lakh / year

₹1,00,000/year

15-Yr Total Deposit

₹15.00 L

100% 80C Deductible

15-Yr Interest Earned

+₹12.12 L

100% Tax-Exempt

25-Yr Extended Corpus

₹68.72 L

Wealth Gain: +₹43.72 L

₹1 Lakh per Year — 15 to 30-Year Compounding & Extension Matrix

See how continued annual contributions compound under sovereign guarantee at 7.1% p.a.

EEE Status: Zero Tax

Tenure Milestone	Total Amount Deposited	Tax-Free Interest Earned	Total Guaranteed Maturity
15 Years (Statutory Maturity)Standard	₹15.00 L	+₹12.12 L	₹27.12 L
20 Years (1st 5-Year Extension)	₹20.00 L	+₹24.39 L	₹44.39 L
25 Years (2nd 5-Year Extension)	₹25.00 L	+₹43.72 L	₹68.72 L
30 Years (3rd 5-Year Extension)	₹30.00 L	+₹73.01 L	₹1.03 Cr

Interactive PPF Calculation Engine

Adjust the sliders or change contribution amounts to simulate different deposit horizons.

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Strategic Insights for ₹1 Lakh / year in PPF

✓Investing ₹1 Lakh / year at the current 7.1% interest rate yields ₹12,12,139 in tax-free interest over 15 years, reaching a final maturity value of ₹27,12,139.

✓If extended for a 5-year block (20 years total), the compounding acceleration increases your final payout to ₹44,38,859 (wealth gain: ₹24,38,859).

✓Extending to 25 years produces ₹68,72,010, more than doubling your invested principal of ₹25,00,000.

✓PPF qualifies for EEE (Exempt-Exempt-Exempt) tax status under Section 80C and Section 10(11), meaning zero income tax on contributions, accrued interest, or the final maturity payout.

Explore Other PPF Contribution Amounts

Annual Tier

₹1.5 Lakh per Year (Max 80C Cap)

₹50,000 per Year

₹12,500 per Month (Max Monthly Cap)

15-Yr Total:₹40.68 L

Monthly Tier

₹10,000 per Month

15-Yr Total:₹32.55 L

Frequently Asked Questions on ₹1 Lakh per Year in PPF

What is the maturity amount for ₹1 Lakh / year in PPF after 15 years?▼

At the prevailing 7.1% p.a. interest rate compounded annually, an investment of ₹1 Lakh / year totals ₹15,00,000 in deposits and earns ₹12,12,139 in interest, yielding a 100% tax-free maturity corpus of ₹27,12,139.

How much will my PPF account grow if extended to 20 or 25 years with ₹1 Lakh / year?▼

After 15 years, PPF accounts can be extended in 5-year blocks. At 20 years, your balance grows to ₹44,38,859 (invested ₹20,00,000). At 25 years, the maturity corpus reaches ₹68,72,010.

What is the 5th-of-the-month deposit rule for PPF?▼

Interest on PPF is calculated on the lowest balance between the close of the 5th day and the end of the calendar month. To maximize your interest earnings for that month, ensure your deposit reaches the PPF account on or before the 5th of each month.

Is interest earned on ₹1 Lakh / year taxable in PPF?▼

No. PPF enjoys complete Exempt-Exempt-Exempt (EEE) status. The annual contribution qualifies for deduction under Section 80C (up to ₹1.5 Lakhs), the interest earned every year is tax-free under Section 10(11), and the final maturity payout is 100% exempt from income tax.

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