PPF Calculator is an investment tool designed for the calculation of maturity amount against the investment made in the Public Provident Fund Scheme.
To use this Fixed Amount Investment PPF Calculator, you have to enter the current PPF Interest Rate and Fixed Yearly Investment Amount (in Rs).
This HDFC PPF calculator available on this page is one of the most accurate and user-friendly PPF Calculators available online for HDFC Bank PPF Account.
If you are saving some money under the PPF scheme, then you may find this little tool useful for doing some calculations e.g interests earned over the period or how your investment grows over the years, final maturity amount, etc. Just enter the yearly deposit amount and it calculates (table/ chart) your interest/ balance for the next 15 financial years.
The PPF calculators available on this page are one of the most accurate and user-friendly PPF Calculators available online.
What is the PPF Calculator?
The PPF calculator is easy to use financial tool that can help to perform even the most complicated PPF related calculations with ease. Using the online PPF calculator you can easily calculate the year-wise PPF returns. This Online PPF calculator is a versatile tool and can be used for any PPF account opened in any banks such as SBI PPF Calculator, ICICI PPF Calculator, Post Office PPF Calculator or HDFC PPF Calculator.
How to use PPF Calculator?
- Public Provident Fund calculator calculates the interest for every year on the basis of the initial details given by you. You are required to enter the PPF interest rate and the amount deposited every year.
- It is assumed that you are depositing the amount on 1st April every year. Then the interest is calculated for the financial year based on the prevailing market rate.
- PPF interest calculator also gives you an estimate of the total amount of investment made by you till a particular year.
Understand the result of the Online PPF Calculator:
The result of online PPF calculator includes a table displaying key data that current and prospective PPF subscribers need to be aware of:
Maturity Amount of PPF: This is the final earning from your PPF account after the total tenure.
Wealth Gain: It is the total interest gain over the complete tenure on your investments.
Loan Available: A loan repayable in 36 months can be obtained on or after the 3rd year, up to 25% of the balance at the end of the preceding financial year. The interest charged on the loan is 1 percent for the first 36 months, and thereafter, 6 percent on the outstanding amount. A second loan can be obtained before the end of the 6th financial year if the first one is fully repaid.
Withdrawal Available: There is a lock-in period of 5 years and the money can be withdrawn in whole after its maturity period. However, pre-mature withdrawals can be made from the end of the fourth financial year from when the PPF commenced. The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of the fourth financial year.
Public Provident Fund (PPF)
Know about Public Provident Fund (PPF)
- What is the Public Provident Fund (PPF)?
- Eligibility for Public Provident Fund (PPF) Account
- Salient Features of PPF
- Disadvantages of Public Provident Fund (PPF)
- FAQs about PPF
What is the Public Provident Fund (PPF)?
PPF or Public Provident Fund is a Government of India-backed long term small savings scheme which provides tax benefits to investors under Section 80C of the Income Tax Act 1961. The PPF account provides fixed returns to investors at rates that are decided by the Ministry of Finance and feature a maturity of a minimum of 15 years. It is the ideal investment option for both salaried as well as self-employed classes. It also offers intermittent deposits subject to certain limits for a 15 year period coupled with income tax exemptions subject to certain conditions, on the investment. Loan and withdrawal facilities also available.
Public Provident Fund (PPF) is a savings-cum-tax-saving instrument. It also serves as a retirement-planning tool for many of those who do not have any structured pension plan covering them.
The PPF account can be opened in designated post offices, State Bank of India branches, and branches of some nationalized banks. ICICI Bank was the first private sector bank which was authorized to open PPF accounts.
Eligibility for Public Provident Fund (PPF) Account:
Individuals who are residents of India are eligible to open an account under the Public Provident Fund scheme. A PPF account may be opened under the name of a minor by his/her legal guardian. However, each person is eligible for only one account under his/her name.
Non-resident Indians (NRIs) are not eligible to open an account under the Public Provident Fund Scheme. However, if a resident, who subsequently becomes an NRI during the currency of maturity period prescribed under the Public Provident Fund Scheme, may continue to subscribe to the fund until its maturity on a non-repatriation basis.
Salient Features of PPF:
- The rate of interest on the subscriptions made to the fund on or after January 1st, 2021 is 7.1%.
- The minimum deposit is 500/- per annum and the maximum deposit is Rs. 1,50,000/- per annum
- The scheme is for 15 years.
- Investment up to Rs 1,50,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
- Interest is completely tax-free.
- Deposits can be made in a lump sum or in 12 installments.
- One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.
- Withdrawal is permissible from the 6th financial year.
- Loan facility available from the 3rd financial year up to the 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
- Free from court attachment.
- Non-Resident Indians (NRIs) not eligible.
- An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
Loans against Public Provident Fund (PPF):
A loan repayable in 36 months can be obtained on or after the 3rd year, up to 25% of the balance at the end of the preceding financial year. The interest charged on the loan is 1 percent for the first 36 months, and thereafter, 6 percent on the outstanding amount. A second loan can be obtained before the end of the 6th financial year if the first one is fully repaid.
Withdrawal from PPF account:
There is a lock-in period of 5 years and the money can be withdrawn in whole after its maturity period. However, pre-mature withdrawals can be made from the end of the fourth financial year from when the PPF commenced. The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of the fourth financial year.
PPF Tax Benefit:
Interest earned is fully exempt from tax without any limit. Annual contributions qualify for tax rebate under Section 80C of Income-tax Act. Contributions to PPF accounts of the spouse and children are also eligible for a tax deduction. Balance in Public Provident Fund account is not subject to attachment under any order or decree of a court. But, Income Tax authorities can attach the account for recovering tax dues. The highest amount that can be deposited is 1,50,000.
Disadvantages of Public Provident Fund (PPF):
The problem with PPF is its lack of liquidity. You can withdraw your investment made in Year 1 only in Year 7. However, loan against investment is available from the 3rd financial year. If liquidity is not an issue, you should invest as much as you can in this scheme before looking for other fixed-income investment options.
FAQs about PPF:
- Where can I open a PPF account?
You can open a Public Provident Fund (PPF) Account at a post office or with a bank that is entitled to offer the PPF account facility. All the nationalised banks offer the facilities to open a PPF account. Private banks such as ICICI Bank, Axis Bank, and HDFC Bank are also entitled to offer the PPF Account facility.
- How to open a PPF account?
In order to open a PPF account, an applicant will be required to submit the KYC documents in addition to a duly filled and signed application form. After the submission of the documents and the form, the amount towards the opening of the PPF account can be deposited.
- What is the interest rate for PPF?
The Ministry of Finance is responsible for setting the rate of interest for PPF. This rate is set every year. The current rate of interest from 01st January 2021 is 7.1%.
- Which amount is taken into consideration for calculating the interest?
The interest on PPF is calculated on the lowest balance in the account between the closing balance on the 5th day of a month and the closing balance on the last day of the month.
- Are the investments made for PPF eligible for tax benefits?
Yes, the investments made towards Public Provident Fund or PPF are eligible for tax benefits under Section 80C of the Income Tax Act.
- What is the lock-in period for Public Provident Fund?
The lock-in period for the Public Provident Fund account is 15 years. However, partial withdrawal is allowed from the PPF account after the 7th year.