Why PPF is a Cornerstone of Indian Savings
PPF is one of the very few Government-backed investment schemes with the EEE benefit — deposits reduce taxable income under 80C, interest earned is tax-free, and the maturity amount is also tax-free. With sovereign guarantee and consistent 7–8% returns, PPF remains a long-term wealth-builder for conservative Indian savers.
PPF Rules at a Glance
- Lock-in: 15 years (extendable in 5-year blocks)
- Min deposit: ₹500/yr · Max deposit: ₹1,50,000/yr
- Partial withdrawal: from year 7 onwards
- Loan against PPF: from year 3 to year 6
- Nomination: mandatory at account opening
Sample Corpus Growth (₹1,50,000/yr)
| Tenure | Total Deposited | Corpus @ 7.1% | Interest Earned |
|---|---|---|---|
| 10 years | ₹15,00,000 | ₹21,55,000 | ₹6,55,000 |
| 15 years | ₹22,50,000 | ₹40,28,000 | ₹17,78,000 |
| 20 years* | ₹30,00,000 | ₹69,25,000 | ₹39,25,000 |
| 25 years* | ₹37,50,000 | ₹1,15,00,000 | ₹77,50,000 |
*Extension in 5-year blocks beyond 15 years.