The Public Provident Fund (PPF) is a popular long-term savings option for people who prefer safe and stable returns. It is backed by the government and also offers attractive tax benefits. With a 15-year lock-in and the option to extend in 5-year blocks, PPF can help build a strong retirement corpus over time.
PPF currently offers an interest rate of 7.1% per year, which is reviewed quarterly by the government. Investors can deposit a minimum of ₹500 and up to ₹1.5 lakh every financial year. Interest is compounded annually, meaning you earn returns on both your investment and the interest accumulated over time.
PPF allows deposits in instalments or lump sum. However, interest is calculated on the lowest balance between the 5th and the last day of each month. This means depositing money before the 5th ensures the amount earns interest for that month, helping you maximise returns.
If you invest ₹5,000 per month (₹60,000 yearly) for 15 years at 7.1%, the maturity value can reach about ₹16.2 lakh. The total investment during this period is ₹9 lakh, while the interest earned is around ₹7.2 lakh.
If the investment continues for 20 years, the corpus can grow to nearly ₹26.6 lakh. Extending it to 25 years can increase the value to around ₹41.2 lakh, where the total investment becomes ₹15 lakh and interest earned is about ₹26.2 lakh.
Investing ₹10,000 monthly (₹1.2 lakh annually) for 15 years can grow to around ₹32.5 lakh. The total investment would be ₹18 lakh, and the interest earned could be about ₹14.5 lakh.
With a 20-year tenure, the corpus may grow to about ₹53.2 lakh, and by 25 years, it can reach roughly ₹82.4 lakh.
A monthly investment of ₹12,000 (₹1.44 lakh yearly) can grow to about ₹39.05 lakh in 15 years. The total investment is ₹21.6 lakh, and the interest earned is around ₹17.45 lakh.
After 20 years, the corpus can grow to nearly ₹64 lakh. If continued for 25 years, it may reach about ₹99 lakh, bringing you close to building a ₹1 crore corpus.
PPF falls under the EEE (Exempt-Exempt-Exempt) category. Contributions qualify for tax deduction under Section 80C up to ₹1.5 lakh per year. The interest earned and the maturity amount are completely tax-free, making PPF one of the most tax-efficient investment options.
PPF is a reliable option for long-term wealth creation with safety and tax benefits. Investing regularly and continuing beyond 15 years can significantly increase your final corpus and support long-term financial goals.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 19, 2026, 11:10 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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