How PPF interest works
PPF interest compounds once a year: FV = P × ((1+r)n − 1) ÷ r × (1+r). The government sets the rate every quarter. Check the current rate before investing.
Key rules
- Minimum ₹500 and maximum ₹1.5 lakh per year.
- 15-year lock-in, which you can extend in blocks of 5 years.
- Investment, interest and maturity are all tax-free (EEE) under the old regime.