Power of Compounding FAQs
What is the maturity amount for ₹12,500 / month in PPF after 15 years?
At the prevailing 7.1% p.a. interest rate compounded annually, an investment of ₹12,500 / month totals ₹22,50,000 in deposits and earns ₹18,18,209 in interest, yielding a 100% tax-free maturity corpus of ₹40,68,209.
How much will my PPF account grow if extended to 20 or 25 years with ₹12,500 / month?
After 15 years, PPF accounts can be extended in 5-year blocks. At 20 years, your balance grows to ₹66,58,288 (invested ₹30,00,000). At 25 years, the maturity corpus reaches ₹1,03,08,015.
What is the 5th-of-the-month deposit rule for PPF?
Interest on PPF is calculated on the lowest balance between the close of the 5th day and the end of the calendar month. To maximize your interest earnings for that month, ensure your deposit reaches the PPF account on or before the 5th of each month.
Is interest earned on ₹12,500 / month taxable in PPF?
No. PPF enjoys complete Exempt-Exempt-Exempt (EEE) status. The annual contribution qualifies for deduction under Section 80C (up to ₹1.5 Lakhs), the interest earned every year is tax-free under Section 10(11), and the final maturity payout is 100% exempt from income tax.