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.

Account Maintenance Minimum • Section 80C

₹500 per Year Minimum PPF Calculator

Under Government of India PPF scheme rules, a minimum deposit of ₹500 is legally required per financial year to keep an account active. Failing to deposit ₹500 in any financial year marks the account as discontinued, requiring a ₹50 penalty per inactive year plus arrears to revive.

15-Yr Tax-Free Corpus₹13,561(at 7.1% p.a. sovereign)

Contribution

₹500 / year

₹500/year

15-Yr Total Deposit

₹7,500

100% 80C Deductible

15-Yr Interest Earned

+₹6,061

100% Tax-Exempt

25-Yr Extended Corpus

₹34,360

Wealth Gain: +₹21,860

₹500 per Year (Statutory Minimum) — 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	₹7,500	+₹6,061	₹13,561
20 Years (1st 5-Year Extension)	₹10,000	+₹12,194	₹22,194
25 Years (2nd 5-Year Extension)	₹12,500	+₹21,860	₹34,360
30 Years (3rd 5-Year Extension)	₹15,000	+₹36,503	₹51,503

Interactive PPF Calculation Engine

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

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Strategic Insights for ₹500 / year in PPF

✓Investing ₹500 / year at the current 7.1% interest rate yields ₹6,061 in tax-free interest over 15 years, reaching a final maturity value of ₹13,561.

✓If extended for a 5-year block (20 years total), the compounding acceleration increases your final payout to ₹22,194 (wealth gain: ₹12,194).

✓Extending to 25 years produces ₹34,360, more than doubling your invested principal of ₹12,500.

✓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)

₹1 Lakh per Year

₹50,000 per Year

₹12,500 per Month (Max Monthly Cap)

15-Yr Total:₹40.68 L

Frequently Asked Questions on ₹500 per Year (Statutory Minimum) in PPF

What is the maturity amount for ₹500 / year in PPF after 15 years?▼

At the prevailing 7.1% p.a. interest rate compounded annually, an investment of ₹500 / year totals ₹7,500 in deposits and earns ₹6,061 in interest, yielding a 100% tax-free maturity corpus of ₹13,561.

How much will my PPF account grow if extended to 20 or 25 years with ₹500 / year?▼

After 15 years, PPF accounts can be extended in 5-year blocks. At 20 years, your balance grows to ₹22,194 (invested ₹10,000). At 25 years, the maturity corpus reaches ₹34,360.

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 ₹500 / 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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