PPF Calculator — Plan Your Tax-Free Wealth
The PPF (Public Provident Fund) is one of India's most popular long-term savings instruments, backed by the Government of India. It offers EEE (Exempt-Exempt-Exempt) tax status — contributions, interest earned, and maturity proceeds are all completely tax-free. The current PPF interest rate is 7.10% per annum (Q3 FY 2025-26).
PPF Calculation Formula
A = P × ((1 + r)^n – 1) / r × (1 + r)
Where A = Maturity, P = Annual contribution, r = Interest rate (decimal), n = Years
PPF Key Features
- Tenure: 15 years (extendable in blocks of 5)
- Min Investment: ₹500 per year
- Max Investment: ₹1,50,000 per year
- Interest Rate: 7.10% (Q3 FY 2025-26) — compounded annually
- Tax Benefit: 80C deduction + tax-free interest + tax-free maturity
- Loan Facility: Available from Year 3 to Year 6
- Partial Withdrawal: Allowed from Year 7
FD Calculator — Fixed Deposit Maturity
A Fixed Deposit (FD) is a financial instrument provided by banks where you deposit a lump sum amount for a fixed tenure at a predetermined interest rate. FDs offer guaranteed returns and are considered one of the safest investment options in India.
FD Calculation Formula (Compound Interest)
A = P × (1 + r/n)^(n × t)
Where A = Maturity, P = Principal, r = Annual rate, n = Compounding frequency, t = Years
Best FD Interest Rates in India 2025
- SBI FD: 6.80% - 7.10% (Senior: 7.30% - 7.60%)
- HDFC Bank FD: 7.00% - 7.25% (Senior: 7.50% - 7.75%)
- ICICI Bank FD: 6.90% - 7.20% (Senior: 7.40% - 7.70%)
- Axis Bank FD: 7.00% - 7.25% (Senior: 7.50% - 7.75%)
- Kotak Bank FD: 7.10% - 7.40% (Senior: 7.60% - 7.90%)
- Bandhan Bank FD: 7.85% - 8.55% (highest rates)
- Small Finance Banks: Up to 9.00% (insured up to ₹5L)
PPF vs FD — Detailed Comparison
- Lock-in: PPF 15 years | FD 7 days to 10 years
- Returns: PPF 7.10% (govt-set) | FD 6.5% - 9% (bank-set)
- Tax on Interest: PPF tax-free | FD taxed at slab rate
- 80C Benefit: PPF yes | FD only on 5-year tax-saver FD
- Liquidity: PPF restricted | FD easy premature withdrawal (penalty)
- Risk: Both zero risk (govt & bank backed)
- Compounding: PPF annual | FD quarterly (better)
How to Maximize Your PPF Returns
- Invest by 5th of Month: Interest is calculated on minimum balance between 5th and end of month
- Max Out Annually: Contribute ₹1.5L each year for maximum compounding
- Lump Sum at Year Start: Invest entire ₹1.5L in April for full year's interest
- Extend After 15 Years: Continue earning tax-free interest in 5-year blocks
- Avoid Withdrawal: Let compounding work its magic
PPF Example — ₹1.5L Annual for 15 Years
- Total invested: ₹22,50,000
- Interest earned: ₹18,18,209
- Maturity value: ₹40,68,209
- Tax saved over 15 years: ~₹6,00,000 (at 30% slab)