If you are looking for a safe and tax-free investment option for the long term, then Public Provident Fund i.e. PPF can prove to be a great scheme. By regularly investing ₹11,000 every month, this scheme gives you the benefit of compounding and helps build a good corpus over time. In such a situation, the question arises that how much total return will you get on completion of maturity of 15 years? Let us understand through simple calculations.
How much interest is being received on PPF?
As of April 2026, the current interest rate of PPF is 7.1% per annum. This rate is reviewed by the government every quarter and has remained stable for the last several years. Interest is compounded annually, but calculated every month on the minimum balance of the account (5th to month end) and credited on 31st March.
Understand the returns on depositing ₹11,000 per month
Total Deposit Amount (Total Investment): ₹11,000 × 12 × 15 = ₹19,80,000
Total Interest (Interest Earned): Based on 7.1% interest rate, the total return you will get is approximately Rs 14,91,248.
Maturity Amount (Maturity Value): This will be approximately ₹34,71,248 which includes the total investment amount and interest returns.
PPF is the ideal scheme for long term investment
The PPF scheme is ideal for long tenures (15 years lock-in, which can later be extended in blocks of 5 years each). This is a great option for big goals like retirement planning, children’s education or marriage. Provides good tax-free returns while being completely protected from market volatility. One thing to know here is that if you make full contribution in the beginning of April every year, then the interest may be slightly higher.
Tax benefits of PPF account
Public Provident Fund (PPF) is considered as “Exempt, Exempt, Exempt (EEE)” category investment. That means investing in it gives tax exemption at three different levels.
First of all, investments made in PPF are eligible for tax deduction under Section 80C of the Income Tax Act. Under this, you can avail maximum exemption of up to ₹ 1.50 lakh in a financial year, but this facility is available only in the old tax system.
Second, the interest received on PPF account is completely tax-free. That means no income tax of any kind has to be paid on it. Third, the entire amount received at the time of maturity or withdrawal of PPF is also completely tax-free. This includes both the amount invested and the interest received on it.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
