PPF Calculator

Use this calculator to get an estimate of the value of your investment in Public Provident Fund (PPF). You can choose to invest a fixed amount every year or invest varying amounts each year. As per Government rules, your PPF account will give you 0.25% more than the rate of interest on the 10 Year G-Sec Bond. Historically, the 10 year G-Sec bond has given interest of approximately 7.50% to 8.0% per annum.

Choose an option for PPF Investments

In which year did you open your PPF account?

Please Enter Year.

Enter investment amount (Rs)

Please Enter Amount.

What is PPF?

Public Provident Fund (PPF) is a scheme of the Central Government, framed under the PPF Act of 1968. Briefly, the PPF is a government backed, long-term small savings scheme which was initially started by the Government because it wanted to provide retirement security to self-employed individuals and workers in the unorganized sector.

 

It is today the most popular investment made by Indian citizens. If you are keen on a safe investment, a decent rate of return, tax benefits (deduction and tax free interest) and have a long term investment horizon, then the PPF is for you.

 

How long is the PPF lock-in period?

As the PPF is targeted as a retirement savings product, the money is blocked for 15 years. With a 15-year lock in, this is the longest horizon for an investment that exists in India.

However, a PPF account does offer a partial withdrawal facility and a loan against the corpus. This can help you during occasions like a wedding in the family, further studies of your children, etc.

 

Are withdrawals from PPF account allowed?

Yes, you can make one withdrawal per year starting from your seventh year. Withdrawals are allowed after the expiry of five full financial years from the end of the year in which your initial subscription was made. This means that from the day you open your PPF account, you will need to complete six full financial years before you can make any withdrawal. Thereafter, you can make one withdrawal per year.

 

You can withdraw an amount of not more than 50% of the previous year’s balance or the PPF balance of the 4th year immediately preceding the year of withdrawal, whichever is less. If you have taken any loan on your PPF, this also gets factored in and reduces your balance. You cannot make more than a single withdrawal in the year. You need to apply with Form C for any withdrawals.

 

What is to be done when your PPF account matures?

You have three choices. Either you can withdraw your PPF maturity amount, or you can extend your account by a 5 year block, as many times as you want and make fresh contributions, or you can extend the account without making any further contributions, and continue to earn interest on it every year. 

If you decide to withdraw your money, your PPF maturity value is exempt from tax. 

If you decide to extend your PPF account and continue making fresh contributions, you can extend it for a block of 5 years at a time, as many times as you want, you can also make withdrawals from the account, up to 60% of the account balance that was there at the beginning of the extended period. Just remember, if you choose to extend your PPF account, submit the necessary documentation for extension before one-year passes from the maturity date. 

 

What is the PPF interest rate for 2017-18?

The Interest rate on PPF tracks the yield of the Government’s 10-year benchmark bond. This move was intended to keep bank deposits competitive. Often banks blamed Government-run Small Savings Schemes (SSS) such as PPF and National Savings Certificates (NSCs) for making their deposits uncompetitive. The PPF interest from April 1, 2017 is set at 7.90%.

 

How is PPF interest rate calculated?

Interest is calculated for the calendar month on the lowest balance at credit of your PPF account, between the close of the 5th day and the end of the month, and is credited at the end of every year. Thus, the best time to invest is between the 1st and the 5th of any month, preferably April each year

 

How to open a PPF account?

You may visit the nearest State Bank of India branch, or a branch of any of State Bank’s subsidiaries. You can also open an account in select nationalized banks or through a post office. Fill in the form, attach a photograph, state your PAN Number, and you’re done. Once your formalities are completed, you will receive a passbook that will record all your PPF transactions.

 

At any point in your life, you can have only one PPF account in your name. You can also have an account in the name of a minor child of whom you are the parent / guardian. However, that will be the child’s account, you will simply be the guardian. You can never have a joint account.

 

If at any time, they find that you have more than one account in your own name, they will deactivate the second account, and will return only the principal.

 

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