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
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 5K-12K in the Post Office Public Provident Fund.
Choosing 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
1. You can take the maturity payment by submitting the account closure form along with the passbook at the concerned Post Office.
2. 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.
3. 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 5000, Rs 8000, Rs 12000
- Current rate of return: 7.1 per cent
- Investment period: 15 years
What will be PPF maturity amount after 15 years with Rs 5000 monthly investment?
Annual investment: Rs 60000 (5000x12)
Your investment amount in 15 years will be Rs 9,00,000. The estimated interest earned will be Rs 7,27,284 and the estimated maturity amount may be Rs 16,27,284.
What will be PPF maturity amount after 15 years with Rs 8000 monthly investment?
Annual investment: Rs 96,000 (8000x12)
Your investment amount in 15 years will be Rs 14,40,000. The estimated interest earned will be Rs 11,63,654 and the estimated maturity amount will be Rs 26,03,654.
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.
Read more: 12x12x12 SIP Formula: How to aim for over Rs 30 lakh corpus in just 12 years with this formula
(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.)
