PPF Calculation: Public Provident Fund (PPF) is a savings scheme backed by the Indian government. It has a lock-in period of 15 years, which can be extended
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into 5-year blocks. The PPF scheme comes with a deposit limit. You must deposit a minimum of Rs 500 and a maximum of Rs 1,50,000 in a year. Thus, let’s find out how much you will earn in 15 years with monthly investments of Rs 7K-12K in the Post Office Public Provident Fund.
Choosing the best option for your PPF Account: Post Office or Bank?
When choosing where to open a PPF account, you can opt for either a bank or a post office, as both offer the same rules and benefits.
Who is eligible to open a PPF account?
1. Resident Indian Adult: A single adult who is a resident of India can open a PPF account.
2. Guardian for Minor/Person: A guardian can open a PPF account on behalf of a minor or a person.
Only one PPF account can be opened across the country, either in a post office or a bank.
What to do after PPF maturity
- You can take the maturity payment by submitting the account closure form along with the passbook at the concerned Post Office.
- The depositor can retain the maturity value in the account without making further deposits, and the applicable PPF interest rate will still be earned; the payment can be taken at any time, or one withdrawal can be made per financial year.
- The depositor can also extend the account for a further block of 5 years, and so on, within one year of maturity, by submitting the prescribed extension form at the concerned Post Office.
Post office PPF calculation conditions
Investment amount: Rs 7000, Rs 10000, Rs 12000
PPF interest rate: 7.1 per cent
Investment period: 15 years
What will be PPF maturity amount after 15 years with Rs 7000 monthly investment?
Annual investment: Rs 84000 (7000x12)
Your investment amount in 15 years will be Rs 12,60,000. The estimated interest earned will be Rs 10,18,197 and the estimated maturity amount will be Rs 22,78,197 with 7.1 per cent PPF interest rate.
What will be PPF maturity amount after 15 years with Rs 10000 monthly investment?
Annual investment: Rs 1,20,000 (10000x12)
Your investment amount in 15 years will be Rs 18,00,000. The estimated interest earned will be Rs 14,54,567 and the estimated maturity amount will be Rs 32,54,567 with 7.1 per cent PPF interest rate.
What will be PPF maturity amount after 15 years Rs 12000 monthly investment?
Annual investment: Rs 1,44,000 (12000x12)
Your investment amount in 15 years will be Rs 21,60,000. The estimated interest earned will be Rs 17,45,481 and the estimated maturity amount will be Rs 39,05,481 with 7.1 per cent PPF interest rate.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
