PPF Returns: What You Actually Earn and How It Compares
When you invest in a Public Provident Fund, a long-term savings scheme backed by the Indian government that offers tax benefits and guaranteed returns. Also known as PPF, it’s one of the most trusted ways to grow money safely over 15 years. Unlike bank fixed deposits that change rates every quarter, PPF returns are set by the government each April and stay locked in for the whole year. That means if you opened your account in 2023 when the rate was 7.1%, you kept that rate even when others dropped. This stability is why millions of Indian families rely on PPF for retirement planning, education funds, or just to keep cash from losing value to inflation.
Most people think PPF returns are just about the interest rate, but the real value comes from how it compounds. Your money grows tax-free, and you can deposit up to ₹1.5 lakh every year. That’s ₹12,500 a month. If you invest that every year for 15 years at 7.1%, you’ll end up with over ₹40 lakh—without paying a single rupee in tax on the interest or the final amount. Compare that to a regular savings account earning 3-4%, where you pay tax on every rupee of interest. Even compared to mutual funds, PPF doesn’t swing with the market. It doesn’t crash when the economy stumbles. It just keeps growing, slowly and surely.
What most don’t realize is that PPF isn’t just a savings tool—it’s a planning tool. You can extend it in 5-year blocks after 15 years, letting your money keep earning interest. You can even take loans against it after year 3, or make partial withdrawals after year 7. That flexibility turns it from a rigid lock-in into a living financial backbone. And because it’s backed by the government, your money is safer than in any private bank or NBFC. No risk of default. No hidden fees. No fine print.
So if you’re wondering whether PPF still makes sense today, the answer is yes—if you’re thinking long-term. It won’t make you rich overnight. But if you want to build something solid, predictable, and tax-free over 15 or 20 years, nothing else in India offers the same mix of safety, returns, and simplicity. Below, you’ll find real breakdowns of how much PPF grows year by year, how it stacks up against other options like FDs and ELSS, and what to watch out for when you’re planning your contributions.
PPF vs EPF for Retirement in India: Which Gives Better Returns, Safety, and Access?
Compare PPF and EPF for retirement in India-returns, risk, and access. Learn which one suits you better and how to use both for maximum tax-free growth.
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