PPF Calculator 2026: Returns at 7.1%, Tax Benefits & Withdrawal Rules

Table of Contents

1. 1. What is PPF?
2. 2. PPF Interest Rate 2026 — 7.1%
3. 3. PPF Returns Calculation
4. 4. PPF Tax Benefits — EEE Status
5. 5. PPF Partial Withdrawal Rules
6. 6. Loan Against PPF
7. 7. PPF Extension After 15 Years
8. 8. PPF vs ELSS vs FD Comparison
9. 9. FAQ
10. 10. Conclusion

Public Provident Fund (PPF) is India’s most beloved long-term tax-saving investment. With a current interest rate of 7.1% for Q1 2026, complete EEE (Exempt-Exempt-Exempt) tax status, and sovereign government guarantee, PPF remains the gold standard for risk-free wealth building. This complete guide covers everything about PPF — returns, tax benefits, withdrawal rules, loan facility, and extension options.

1. What is PPF?

PPF is a government-backed savings scheme with a 15-year lock-in period. You can invest a minimum of ₹500 and a maximum of ₹1.5 lakh per financial year. The interest rate is set by the Government of India every quarter. PPF accounts can be opened at any post office or authorized bank branch. Most major banks now offer PPF account opening online.

2. PPF Interest Rate — Q1 2026: 7.1%

PPF interest is calculated on the minimum balance between the 5th and last day of each month. Always invest before the 5th of the month to maximize interest for that month.

3. PPF Returns — 15-Year Maturity Calculation

4. PPF Tax Benefits — Triple EEE Status

PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — the highest tax benefit available on any investment in India:

• EXEMPT 1: Investment qualifies for Section 80C deduction (up to ₹1.5 lakh per year)
• EXEMPT 2: Interest earned is completely tax-free — no income tax on annual PPF interest
• EXEMPT 3: Maturity amount is 100% tax-free — no tax on the entire corpus at maturity
• Also exempt from Wealth Tax — making PPF truly the most tax-efficient investment

5. PPF Partial Withdrawal Rules

Partial withdrawal is allowed from the 7th financial year onwards. Maximum withdrawal: 50% of the balance at the end of the 4th year preceding the year of withdrawal, or 50% of the balance at the end of the immediately preceding year — whichever is lower.

6. Loan Against PPF

You can take a loan against your PPF balance from the 3rd to 6th financial year. Maximum loan: 25% of the balance at the end of the 2nd year preceding the loan year. The loan interest rate is PPF rate + 1% (currently 8.1%). The loan must be repaid within 36 months.

7. PPF vs ELSS vs FD — Complete Comparison

8. FAQ

Can I open PPF account online?

Yes. SBI, HDFC Bank, ICICI Bank, Axis Bank, and most major banks allow PPF account opening online through net banking or mobile banking. Post office PPF accounts can also be opened online through the India Post Payments Bank (IPPB) app.

What happens after PPF matures in 15 years?

After 15 years, you can: (1) Withdraw the full amount tax-free, (2) Extend for 5 more years with continued contributions, or (3) Extend for 5 more years without making fresh deposits (balance continues to earn 7.1% interest tax-free).

9. Conclusion

PPF remains the cornerstone of tax-efficient, risk-free long-term savings for Indian families. With 7.1% guaranteed returns, EEE tax status, and government backing, no other instrument offers PPF’s combination of safety, returns, and tax efficiency. Maximize your PPF contributions every year — and invest before the 5th of each month for full interest benefit. Use TechCompare.in’s free PPF Calculator to plan your 15-year corpus today.

Calculate PPF Maturity Free — 7.1% Rate | 80C Tax Savings | EEE Status