What is the current PPF interest rate?

The PPF interest rate is set by the government every quarter and has been around 7.1% in recent years. It is compounded annually and fully tax-free (EEE status).

PPF & NPS Calculator

Q: How much of my NPS corpus can I withdraw as lumpsum?

At retirement (age 60), you can withdraw up to 60% of your NPS corpus as a tax-free lumpsum. The remaining minimum 40% must be used to purchase an annuity for regular pension income.

Plan your long-term retirement corpus with the Public Provident Fund or National Pension System.

Scheme

PPF

NPS

Annual Contribution ₹1,50,000

₹

Expected Annual Return 7.1%

Investment Duration 15 Years

Yrs

₹0

Maturity Corpus

Total Invested₹0

Interest / Growth Earned₹0

PPF vs NPS — Key Differences

	PPF	NPS
Returns	Fixed, govt-set (~7.1%), reviewed quarterly	Market-linked (equity+debt mix), historically 9-12%
Lock-in	15 years (extendable in 5-yr blocks)	Until age 60 (retirement)
Tax treatment	EEE — fully tax-free at every stage	EET — 60% lumpsum tax-free, annuity taxed as income
Section 80C	Up to ₹1.5 lakh/year	Up to ₹1.5 lakh/year (80CCD1) + extra ₹50,000 (80CCD1B)
Risk	Zero — government backed	Market risk on equity/corporate debt portion
Liquidity	Partial withdrawal allowed from year 7	Very limited partial withdrawal, mainly for emergencies

📢 Current Scheme Details (2026)

PPF interest rate: Set quarterly by the government, historically ranging 7.0% – 8.0%, compounded annually.
PPF contribution limits: Minimum ₹500/year, maximum ₹1,50,000/year per account.
NPS asset allocation: You can choose your equity/corporate debt/government bond mix (Active Choice) or use Auto Choice, which reduces equity exposure as you age.
NPS Tier I vs Tier II: Tier I is the primary retirement account with tax benefits and lock-in. Tier II is a flexible, voluntary savings account without lock-in but no tax benefit (for most subscribers).

Rates and rules are reviewed periodically by the government/PFRDA — always confirm current figures before investing.

How This Calculator Works

PPF: simulated as an annual contribution compounding once a year at your chosen rate, matching how PPF interest is credited at financial year-end (though calculated monthly on the lowest balance between the 5th and last day of each month in practice).

NPS: simulated as a monthly contribution (annual amount ÷ 12) compounding monthly at your chosen expected return, until your investment duration ends. At retirement, 60% of the corpus is shown as a tax-free lumpsum, and the remaining 40% is annuitized at your chosen annuity rate to estimate monthly pension.

Tax Benefits Summary

PPF (EEE): Contribution deductible under 80C (Old Regime), interest tax-free, maturity amount tax-free — the cleanest tax-free instrument available to individuals.
NPS 80CCD(1): Contribution up to ₹1.5 lakh deductible under the overall 80C limit (Old Regime).
NPS 80CCD(1B): Additional ₹50,000 deduction exclusively for NPS, over and above the 80C limit (Old Regime only).
NPS 80CCD(2): Employer's NPS contribution (up to 10-14% of salary) is deductible and available under both Old and New Regime.
NPS withdrawal: 60% lumpsum at retirement is tax-free; the 40% used for annuity is not taxed at purchase, but the monthly pension received is taxed as regular income.

The government reviews and sets the PPF rate every quarter. It has hovered around 7.1% in recent years, compounded annually, and is completely tax-free.

At retirement (age 60), you can withdraw up to 60% of your accumulated NPS corpus as a tax-free lumpsum. The remaining minimum 40% must be used to buy an annuity plan for regular monthly pension income.

Yes, PPF accounts can be extended indefinitely in blocks of 5 years, either with continued contributions or without (just earning interest on the existing balance).

Historically, NPS (especially with higher equity allocation) has delivered higher long-term returns (9-12%) than PPF's fixed ~7.1%, but NPS carries market risk while PPF is fully government-guaranteed with zero risk.

Yes, parents/guardians can open a PPF account on behalf of a minor child, though the combined contribution across the parent's own account and the minor's account cannot exceed ₹1.5 lakh/year for 80C purposes.

NPS is fully portable across employers and even between government and private sector jobs — your Permanent Retirement Account Number (PRAN) stays the same for life.

⚠️

PPF returns shown are illustrative based on typical government-set rates; NPS returns are market-linked estimates, not guarantees. Annuity/pension figures are approximate. This is not investment or retirement planning advice — please consult a SEBI-registered advisor for your specific retirement plan.

🧾 Save More on Taxes

Explore tax-saving investments (ELSS, PPF, insurance) that also grow your wealth.

See Tax-Saving Options →

NexifyLabs Money may earn a commission if you sign up through the link above, at no extra cost to you.