🏦 PPF Calc India

PPF Account

A PPF account is a savings account opened under the Public Provident Fund scheme at designated banks or post offices, where deposits earn 7.1% annual interest with tax benefits under Section 80C.

Detailed Explanation

## Opening a PPF Account You can open a PPF account at any designated bank (SBI, BOI, ICICI, HDFC, etc.) or any post office across India. Some banks now allow online account opening, though the first time usually requires visiting a branch. ## Eligibility - Any Indian resident individual can open a PPF account - One PPF account per person (only one) - Parents/guardians can open one account for a minor child - NRIs cannot open new PPF accounts (existing ones can continue until maturity under current rules) - HUFs (Hindu Undivided Families) cannot open PPF accounts (since 2005) ## Documents Needed - PAN card (or Form 60 if you don't have PAN) - Aadhaar card - Address proof - Passport-size photographs - Nomination form ## Account Features - **Minimum deposit**: Rs 500/year (if you don't deposit the minimum, the account becomes inactive; reactivation requires Rs 500 penalty per year of default plus the minimum Rs 500 per year) - **Maximum deposit**: Rs 1,50,000/year - **Deposit frequency**: You can deposit in lump sum or installments (up to 12 deposits per year) - **Nomination**: You can nominate one or more persons to receive the proceeds in case of death - **Transfer**: You can transfer your PPF account from one bank to another or from bank to post office (and vice versa) ## Managing Your Account Most banks now offer online access to view your PPF balance and make deposits via net banking. You can track your balance, see interest credits, and plan your deposits accordingly. Use our [PPF calculator](/) to project your account's growth based on your planned deposit schedule.

See it in practice

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Related Terms

PPF

Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India that offers tax-free returns at 7.1% per annum with a 15-year lock-in period.

EEE Status

EEE (Exempt-Exempt-Exempt) status means an investment is tax-free at all three stages: when you invest, while it earns returns, and when you withdraw at maturity.

Section 80C

Section 80C of the Income Tax Act allows Indian taxpayers to claim a deduction of up to Rs 1,50,000 per year from their taxable income by investing in specified instruments like PPF, ELSS, and tax-saver FDs.

Compound Interest

Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods, causing your money to grow exponentially over time.

Maturity Amount

The maturity amount is the total sum you receive when a PPF account completes its full tenure, including all your deposits plus accumulated compound interest.

Lock-in Period

The lock-in period is the minimum time you must keep your investment before you can withdraw. PPF has a 15-year lock-in, though partial withdrawals are allowed from year 7.

Partial Withdrawal

Partial withdrawal from PPF is allowed from the 7th financial year onwards, with the maximum amount being 50% of the balance from 4 years prior or the preceding year's balance, whichever is lower.

Loan Against PPF

PPF account holders can take a loan against their PPF balance from the 3rd to 6th financial year, borrowing up to 25% of the balance from two years prior at an interest rate of PPF rate plus 1%.

PPF Extension

After the 15-year maturity, a PPF account can be extended in 5-year blocks either with continued contributions or without, allowing the corpus to keep earning tax-free interest.

Tax-Free Returns

Tax-free returns mean the gains from an investment are not subject to income tax, allowing you to keep the full amount earned without any deductions for taxes.

Risk-Free Investment

A risk-free investment is one where your principal and returns are guaranteed, typically backed by a sovereign government. PPF is considered risk-free because it carries a Government of India guarantee.

Annual Deposit

The annual deposit in PPF refers to the total amount contributed to a PPF account in a financial year, with a minimum of Rs 500 and a maximum of Rs 1,50,000.

Interest Rate

The PPF interest rate is the annual rate at which your PPF balance earns returns, currently set at 7.1% per annum and revised quarterly by the Government of India based on government bond yields.

Sovereign Guarantee

A sovereign guarantee means the Government of India stands behind the PPF scheme, ensuring that both your principal and accumulated interest are fully protected regardless of economic conditions.