Work out what your Public Provident Fund will be worth at maturity. Covers the 15 year term, the ₹1.5 lakh yearly cap, the 5 April deposit rule, and 5 year extensions.
Why does the 5 April date matter?
Interest for a month is worked out on the lowest balance between the close of the fifth day and the month end. Deposit on 4 April and the money earns interest for all twelve months. Deposit on 6 April and you lose a month, every year, for fifteen years.
Can I put in more than ₹1.5 lakh a year?
No. ₹1,50,000 is the yearly ceiling across all PPF accounts you and your minor children hold. Anything above it earns no interest and is simply returned. The minimum to keep the account active is ₹500 a year.
What happens after 15 years?
You can withdraw everything, or extend in blocks of five years - with or without fresh deposits. An extension keeps the tax-free interest running, which is why many people never close the account.
Is PPF interest really tax free?
Yes. Deposits qualify under section 80C in the old regime, the interest is exempt, and the maturity amount is exempt. That triple exemption is rare and it is what makes a modest rate worth more than it looks.
Can I take money out early?
Partly. From the seventh year you can make one partial withdrawal a year, within limits. Loans are available between the third and sixth year. Full closure before 15 years is allowed only for narrow reasons and costs you 1% of interest.
Will the rate stay at 7.1%?
Almost certainly not. The Government reviews small savings rates every quarter, and PPF has paid anywhere from 7.1% to 12% over the years. Treat any 15 year projection as an illustration built on one assumption.