PPF Account Explained: Returns, Rules & Tax Benefits (2026)

The Public Provident Fund (PPF) is a government-backed savings scheme that combines guaranteed returns, tax-free growth and an 80C deduction — which is why it's a staple of long-term Indian portfolios. Here's how it works.

The basics

• Rate: currently 7.1% per year (set by the government each quarter), compounded annually.
• Tenure: 15 years, extendable in blocks of 5.
• Limits: minimum ₹500 and maximum ₹1.5 lakh per financial year.

Because interest compounds annually and you contribute every year, the balance snowballs — the PPF calculator shows exactly how your corpus grows year by year.

The triple (EEE) tax benefit

PPF is one of the few "EEE" investments in India: your contribution is deductible under Section 80C, the interest earned is tax-free, and the maturity amount is tax-free too. That makes its effective return higher than a taxable option like an FD at the same headline rate.

Who should use it

PPF suits a safety-first, long-horizon goal like retirement or a child's education, and works best when you invest early each financial year so your money earns interest for the full year. It pairs well with market-linked options — see our PPF vs ELSS vs FD comparison to decide the split.

The bottom line

For guaranteed, tax-free, long-term growth, PPF is hard to beat. Enter your yearly contribution and tenure in the PPF calculator to project your maturity value at the current 7.1% rate.