Aarambha: Learn & InvestPPF is a savings account run by the government. You put money in every year for 15 years, it earns interest, and none of it is taxed. See what your yearly deposits could grow to, and what keeping the account past 15 years adds.
Your numbers
One lakh fifty thousand rupees
Between ₹500 and ₹1.5 lakh a year.
7.1% for October to December 2026; reset every quarter.
Value after 15 years
₹40,68,209
Tax-free at maturity.
- You deposit
- ₹22,50,000
- Interest earned
- ₹18,18,209
Rate for October to December 2026 · Checked 5 November 2026 by Prashanth Sekhar
Estimates for education, not tax, legal or investment advice. Report a wrong number
Understand your result
PPF is a government-backed account with a 15-year lock-in. Interest is set every quarter, compounds once a year, and is tax-free, as is the maturity amount.
It works best as the steady, safe part of a long-term plan: retirement, a child's education, or simply money you don't want exposed to the market.
A common mistake
Depositing late in the month or year. Interest is worked out on the lowest balance between the 5th and the month end, so deposits made by 5 April earn the whole year's interest.
How it's worked out
Each year: value = (value + deposit) × (1 + rate).
Assumptions
- Rate: 7.1% for October to December 2026, assumed to stay the same.
- Deposits go in by 5 April, so they earn the whole year's interest. No loans or withdrawals.
- Deposits count under 80C only in the old regime; interest and maturity are tax-free in both.
Sources
Updates
- 5 November 2026: Published. Rules checked against the Income-tax Act, 2025, the Finance Act, 2026 and the official October to December 2026 rates.
Questions people ask
What is the PPF interest rate now?
7.1% a year for October to December 2026. The government reviews it every quarter.
Can I withdraw before 15 years?
Partial withdrawals are allowed from the seventh year, and loans in the earlier years, within limits.
Does PPF save tax in the new regime?
Deposits don't, since the new regime has no 80C. The interest and the maturity amount stay tax-free in both regimes.
What happens after 15 years?
You can close it, or extend it in blocks of five years, with or without new deposits.