The Public Provident Fund won't make you rich fast — but it's government-backed, and every rupee of interest is tax-free. See what steady yearly deposits grow into.
Leave an email or a number — either one works — and Archita will follow up with a plain-English read on what these figures mean for you. No spam. No drip campaigns.
The Public Provident Fund is a government savings scheme with a 15-year lock-in. You can put in ₹500 to ₹1.5 lakh a year, the government pays a set interest rate (revised quarterly), and interest compounds annually. It's about as safe as an Indian investment gets — sovereign-backed.
Its superpower is tax. PPF is EEE: deposits qualify for 80C deduction, the interest is tax-free, and so is the final maturity. Very few instruments are tax-free all the way through.
Each year's deposit compounds until maturity. For equal yearly deposits at the start of each year:
Where P is the yearly deposit, r is the rate, and n is the number of years. Real PPF interest is figured on the lowest monthly balance, so deposit early in April each year to squeeze out a little extra.
Both save tax under 80C, but they're opposite animals. PPF is safe, fixed, tax-free, 15-year lock-in. ELSS is equity — higher potential return, market risk, and only a 3-year lock-in. PPF protects; ELSS grows.
Most sensible portfolios hold some of each. Try the ELSS calculator, or ask Archita what split fits your risk and your tax.