Any resident individual Indian citizen can open a PPF account at a designated bank branch or post office, either in their own name or on behalf of a minor child (with a parent or guardian operating it until the child turns 18). Hindu Undivided Families generally can't open one, and non-resident Indians generally can't open a new account — though an account opened while the holder was still a resident typically keeps running until maturity even after a change in residency status, subject to rules that have shifted over time. If you're unsure where you stand, confirm with your bank or post office before opening, continuing, or extending an account.

Opening one is simple at most banks and post offices: an account-opening form, standard ID and address proof, a photograph, and the minimum opening deposit. Many banks let existing customers open a PPF account entirely online through net banking, linked straight to a savings account for future deposits. Register a nominee at opening, or add one later if you skipped it — it's a small step that makes a real difference to how smoothly the balance transfers to your family if something happens to you before maturity.

1. Each year, the annual deposit is added to the running account balance.
2. Interest for the year is calculated on the balance and credited (illustratively, annually).
3. This deposit-then-compound cycle repeats every year for the full tenure of the account.
4. The final balance after the last year is the maturity value.

Real PPF interest is actually calculated monthly, on the lowest balance between the 5th and last day of each month, and credited annually — this calculator uses a simplified annual-compounding model for illustration, so it will land slightly off from the exact figure your passbook shows.

Depositing ₹₹1,20,000 at the start of every financial year at 7.1%, here is what the balance looks like at three points across the 15-year tenure:

The interest line grows on its own even though the deposit stays flat at ₹₹1,20,000 — that's compounding, since each year's interest is calculated on an ever-larger balance rather than on the deposit alone. By year 15, roughly ₹₹18,00,000 of the ₹₹32,54,567 total came from your own deposits and the rest, about ₹₹14,54,567, came from compounded interest — and that interest share keeps growing the longer the account stays open, which is the real argument for extending past 15 years if your goal genuinely has that long a horizon.

When the account hits its standard 15-year maturity, you generally have three choices: withdraw everything and close it, extend for another 5-year block while continuing deposits, or extend for another 5-year block with no further deposits, letting the existing balance keep earning interest at the prevailing rate. Full withdrawal makes sense if you need the money for something specific now; continued-deposit extension suits someone still actively saving toward retirement; extension without deposits suits someone who wants the balance to keep compounding tax-free without adding new money. You typically need to tell the bank or post office which option you want within a specified window after maturity — miss it and the terms available can change, so it's worth deciding well before the date arrives rather than at the last minute.

• Minimum deposit per financial year: commonly cited as ₹500 to keep the account active.
• Maximum deposit per financial year: commonly cited as ₹1.5 lakh; anything above that doesn't earn interest or qualify for tax benefit.
• Standard maturity: 15 years from the end of the financial year of account opening, extendable in 5-year blocks.
• Partial withdrawals: typically permitted from the 7th financial year onward, subject to a cap.
• Loan facility: typically available between the 3rd and 6th financial years, subject to specific terms.

Every figure here — the minimum, the maximum, the withdrawal window, the loan window — is set by government notification and can change, so confirm the current rule with your bank, post office, or the Ministry of Finance before acting on it.

PPF is often called an “EEE” instrument: the annual deposit typically qualifies for a deduction under the relevant section of the Income Tax Act (subject to a combined cap shared with other instruments), the interest credited each year is typically exempt from tax, and the maturity amount is typically fully tax-free on withdrawal. That three-way exemption is one of the most attractive things about the scheme next to market-linked alternatives — but tax law changes, and whether you get the deduction can depend on which tax regime you've chosen for the year, so check current rules with a tax professional before assuming full EEE treatment applies to you.

PPF trades a long lock-in for a government guarantee and full tax exemption — a combination that, over the long run, has typically returned less than well-diversified equity investing. Most financial plans use it as one stabilising piece, not the only savings vehicle.

• Deposit before the 5th of the month, ideally the 5th of April, since interest is calculated on the lowest balance between the 5th and last day of each month — depositing late (especially in March) can cost you most of that year's interest.
• If cash flow allows, deposit the full amount as a lump sum early in the year rather than spreading it out, so more months earn interest on the full balance.
• Don't miss the minimum yearly deposit — an inactive account needs the missed minimums paid back with a penalty before it works again.
• The interest rate is revised every quarter, not fixed for the account's life — don't plan around today's rate holding for 15 years.
• The annual deposit cap applies per individual across all accounts, including a minor's account you operate — it's not a separate allowance.
• Decide on extension, withdrawal, or extension-without-deposits well before the 15-year maturity date, rather than scrambling when the notice window opens.

This calculator shows the shape of PPF compounding under an illustrative rate — the actual rate moves every quarter, and the real monthly compounding mechanics will land your passbook figure slightly off from this simplified model. What actually moves your outcome more than any single rate assumption: depositing early in the financial year, staying consistent through all 15 years, and deciding on extension well before the 15-year mark arrives rather than at the deadline.

This calculator models annual deposits compounded once per year on the running balance, over the number of years you specify, using the interest rate you entered or the current default. Actual PPF interest is computed monthly on the lowest balance between the 5th and last day of each month, and credited to the account annually, which can produce a slightly different figure from this simplified model. This is general educational information, not investment or tax advice — verify current PPF rules, deposit limits, and the notified interest rate with your bank, post office, or the Ministry of Finance before making a financial decision.