Quick answer
How much will ₹1.5 lakh a year in PPF grow to?
At the current PPF rate of 7.1%, depositing the maximum ₹1.5 lakh every year for 15 years grows to about ₹40.68 lakh. You put in ₹22.5 lakh and earn about ₹18.18 lakh in interest, all of it tax-free. Extending by 5 more years with the same deposit takes it to about ₹66.58 lakh.
- Rate: 7.1% a year, compounded annually (Oct–Dec 2026)
- Deposit: ₹500 to ₹1.5 lakh a year; lock-in of 15 years
- Tax: EEE, so interest and maturity are tax-free
How is PPF interest calculated?
PPF interest is worked out every month on the lowest balance between the 5th and the end of the month, and credited once a year on 31 March. If you deposit by 5 April, the yearly balance grows like this:
Worked example: ₹1.5 lakh a year at 7.1%
After year 1 the balance is ₹1,60,650. After 15 years it reaches about ₹40,68,209 on deposits of ₹22,50,000.
What are the key PPF rules?
- Minimum deposit ₹500 and maximum ₹1,50,000 in a financial year
- Account matures after 15 full financial years, and can be extended in 5-year blocks
- Partial withdrawals are allowed from the 7th financial year
- Loans against the balance are available from the 3rd to the 6th year
Frequently asked questions
What is the current PPF interest rate?
The PPF interest rate is 7.1% a year for Oct–Dec 2026. The Ministry of Finance reviews small savings rates every quarter.
How much will ₹1.5 lakh a year in PPF become in 15 years?
At 7.1%, depositing ₹1.5 lakh every year for 15 years grows to about ₹40.68 lakh. You deposit ₹22.5 lakh and earn about ₹18.18 lakh in tax-free interest.
Is PPF interest taxable?
No. PPF has EEE status: deposits up to ₹1.5 lakh qualify for deduction under the old tax regime, and both the interest and the maturity amount are tax-free.
Can I extend my PPF account after 15 years?
Yes. You can extend a PPF account in blocks of 5 years, with or without fresh deposits, by submitting a form within one year of maturity.
When should I deposit in PPF to earn the most interest?
Deposit before the 5th of the month. PPF interest is calculated on the lowest balance between the 5th and the last day of each month, so a deposit by 5 April earns interest for the whole year.
What is the minimum deposit to keep a PPF account active?
You must deposit at least ₹500 in every financial year. If you miss a year, the account becomes discontinued and must be revived by paying the missed minimum deposits along with a penalty.