PPF or Public Provident Fund account is one of the most popular government-backed saving schemes in India. The PPF scheme was launched by the government to benefit small savers and offers guaranteed returns along with tax benefits as it falls under the Exempt-Exempt-Exempt (EEE) category. If you are investing in PPF, you would like to know how much your money would grow during the investment tenure. The PPF Calculator can help you compute the year-wise PPF returns you can earn by contributing to your PPF account over a pre-determined period and with a specific frequency.
The current PPF interest rate is 7.1% (Q3 of FY 2023-24), the minimum investment tenure is fixed at 15 years while the investment amount can range between Rs. 500 to Rs. 1.50 lakh in a financial year. However, since PPF interest rate, maturity, taxation, and withdrawal rules are set by the government, there is no need for separate bank-wise calculators, such as SBI PPF Calculator, PNB PPF Calculator, India Post PPF Calculator, HDFC PPF Calculator, ICICI PPF Calculator, etc.
How to Use PPF Calculator
To use the PPF calculator correctly, you will need to provide the following data:
Tenure of the PPF account – Minimum 15 years to maximum 50 years with an option of extension in blocks of 5 years.
Deposit/Payment Frequency – This can be chosen as monthly, quarterly, half-yearly, and annually. In case of quarterly deposits, payments need to be made every quarter, half-yearly mean twice each year and so on.
Deposit Amount – This amount is to be deposited in the PPF account as per the deposit frequency. Thus if the deposit amount is Rs. 1,000 and the Deposit Frequency is monthly, the total PPF deposit for the year will be Rs. 12,000 and automatically calculated by the PPF calculator.
Interest Rate – This is the PPF rate of return/PPF rate of interest that you are expecting on your investment.
Once you have provided the above data into the PPF calculator, just click on “Calculate” to get instant information about PPF maturity amount, PPF Interest earned, total PPF investment, and much more.
Important Points Related to PPF Calculation
There are some key rules that you need to bear in mind too. They are as follows:
- The maximum amount you can invest in a year is Rs. 1.5 lakh annually
- The minimum you can invest in a PPF account is Rs. 500 annually
- Compounding of interest occurs once every year at the end of the financial year
- The maturity of PPF account is in 15 years and the proceeds are completely tax-free
- PPF interest rate is liable to change every quarter as per announcements made by the Finance Ministry