May 22, 2025 | New Delhi: For Indian investors seeking a safe, tax-efficient, and long-term savings plan, the Public Provident Fund (PPF) remains a top choice. Backed by the Government of India and currently offering a 7.1% annual interest, the PPF not only delivers stable returns but also creates significant wealth over time. A disciplined investment of ₹1.5 lakh annually — the maximum allowable — can help you build a corpus exceeding ₹1.54 crore in 30 years, completely tax-free.
PPF: Key Features & Benefits
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Tenure: 15 years (extendable in 5-year blocks)
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Annual Investment Limit: ₹500 to ₹1.5 lakh
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Tax Benefits:
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Section 80C deduction for up to ₹1.5 lakh investment annually
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Tax-free interest and maturity amount under EEE (Exempt-Exempt-Exempt) category
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Interest Rate: 7.1% p.a. (compounded annually, subject to quarterly revision by the government)
PPF Withdrawal Rules: What You Need to Know
Though the PPF account matures after 15 years, partial withdrawals are allowed:
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When: From the 6th financial year onwards (after completing 5 years, including the opening year)
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How Much: Up to 50% of the account balance at the end of either the 4th or 5th financial year, whichever is lower
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Frequency: One partial withdrawal per financial year
For example, if you opened your account in FY 2024-25, you can begin withdrawals in FY 2030-31.
What Happens After 15 Years?
Once your PPF account completes its initial 15-year term, you have three options:
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Withdraw the full maturity amount and close the account
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Extend the account in blocks of 5 years with contributions
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Extend without further contributions to continue earning tax-free interest
PPF Growth Projections: How ₹1.5 Lakh Annually Becomes ₹1.54 Crore
Here’s how consistent investing over the long term compounds your wealth:
| Duration | Total Investment | Estimated Interest | Total Corpus |
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| 15 Years | ₹22,50,000 | ₹18,18,209 | ₹40,68,209 |
| 20 Years | ₹30,00,000 | ₹36,58,288 | ₹66,58,288 |
| 25 Years | ₹37,50,000 | ₹65,58,015 | ₹1,03,08,015 |
| 30 Years | ₹45,00,000 | ₹1,09,50,911 | ₹1,54,50,911 |
The longer you extend and invest, the more powerful the compounding effect becomes — and all of it remains completely tax-free.
Can You Take a Loan Against Your PPF?
Yes. You can avail a loan against your PPF balance between the 3rd and 6th year of account opening. The loan amount is capped at 25% of the balance at the end of the second year preceding the loan year. The interest rate on such loans is usually 1% higher than the prevailing PPF interest rate.
Final Thoughts
For conservative investors looking to build wealth with zero risk and full tax exemption, PPF remains unmatched. While it may not offer the high returns of equities, its guaranteed returns, flexible withdrawal options, and EEE tax treatment make it ideal for long-term financial goals like retirement, children’s education, or buying a home.
To become a PPF crorepati, all it takes is patience, consistency, and discipline — and ₹1.5 lakh annually.