There is no doubt that the Public Provident Fund or PPF account is a popular saving scheme backed by the Indian government. The government launched the PPF scheme in order to benefit small savers and it offers guaranteed returns as well as tax benefits because it falls under the Exempt-Exempt-Exempt (EEE) category and is eligible for tax benefits. In the event that you decide to invest in a PPF, you may want to know how much money will grow over the period of time you have invested. With the help of the PPF Calculator, you can compute the PPF returns that you will be able to earn over the course of the year by contributing to your PPF account over a predetermined period and on a regular basis.
In a financial year, the interest rate for PPFs is currently 7.1% (Q3 of FY 2022-23), the minimum investment tenure is 15 years, and the investment amount may range between Rs. 500 and Rs. 1.50 lakh. It is important to note, however, that there are no separate bank-specific calculators required for the PPF because the government sets the interest rate, maturity, taxation, and withdrawal rules for PPFs. Examples of such calculators include SBI PPF Calculator, PNB PPF Calculator, India Post PPF Calculator, HDFC PPF Calculator, ICICI PPF Calculator.
How to Use PPF Calculator
The following data will be needed in order to correctly use the PPF calculator:
Duration of the PPF account – The account can be extended in five-year chunks for a minimum of 15 years up to a maximum of 50 years.
Frequency of deposits/payments – As per your choice, you can make payment choices such as monthly, quarterly, half-yearly, and annual. With quarterly deposits, you will have to make payments every quarter, with half-yearly payments, you will have to make payments twice a year, etc.
Amount of Deposit – Depending on the deposit frequency, this amount will be deposited in the PPF account, which will result in the total amount of PPF deposits for the year being Rs. 12,000. This will be automatically calculated by the PPF calculator if the deposit amount is Rs. Monthly deposits of 1,000 are made.
Rate of Interest – On your investment, you are expecting to receive a PPF return rate/PPF interest rate.
Find out what the current interest rate is on PPFs
Using the PPF calculator, you can instantly find out how much your PPF investment is worth, how much interest you earned, and more. You simply have to enter the data above and click on “Calculate” to get instant results.
Important Points Related to PPF Calculation
In addition, you should keep the following rules in mind:
- An annual investment limit of Rs. 1.5 lakh is available to you
- Investing in a PPF account requires a minimum of Rs. 500 a year
- During the financial year, interest compounds once a year
- PPF accounts mature in 15 years and their proceeds are tax-free
- As announced by the Finance Ministry, the PPF interest rate may change every quarter
Advantages of Using PPF Calculator
Using an online PPF calculator can help you to determine your investment amount and investment period, as well as interest and maturity value. The following are some of the main benefits:
- By using a PPF calculator you can find out how much interest you will earn by investing a certain amount of money for a given period of time, which will give you a clear idea of how much earnings you will receive.
- Moreover, there is also the possibility to decide on a maturity period based on your convenience. However, you should keep in mind that the minimum maturity period is 15 years and that it can be extended in terms of 5 year blocks up to a maximum of 50 years.
- Furthermore, it can also be used to estimate the total investment for a particular year and help you achieve the right balance between the amount of investment and the amount of return you want from it.
- This will eliminate the need for manual calculations and save you a lot of time because you won’t have to make mistakes.
- You can also use the PPF calculator at the tax planning stage to make better investment decisions.