Monthly Deposit Amount(Up to 150000)
Current Interest Rate(7.1%)
Duration of investment (in years)(1 year - 30 years)
|Interest Rate (%)||7.1 %|
|Invested Amount||₹ 90000|
|Wealth Gained||₹ 70812|
|Maturity Amount||₹ 160812|
The Public Provident Fund was created in 1968 by the Affairs of the Finance Ministry of India. It is a scheme that enables people to build a corpus for the future and save taxes if invested before maturity. Anyone can open a PPF account which makes it a great building block for self-directed investors. PPFs have become popular among investors because of their safety, high rate of return, easy to maintain, and tax savings.
With an aim to encourage individuals to invest for their retirement, PPF has gained popularity with investors due to its safe nature and substantial returns. However, being a long-term investment plan, it should be best suited for passive and risk-averse investors. Whereas we also can’t deny the importance of planning your investments and their aspects like maturity value and earned interest ahead of time. If you own a public provident fund account, you may find it tedious to calculate the maturity value and interest earned on your monthly contributions. The PPF Calculator created by Banks allows you to do this quickly and easily. Let’s talk about PPF, its elements, and its calculator in detail.
What is PPF?
PPF stands for Public Provident Funds. PPF stands for public provident fund, which is a savings scheme introduced by the government of India in the year 1968. It was launched to encourage people to start saving in a disciplined manner. That way it would reduce the impact of inflation on them, as well as help them meet their financial requirements at any point in time when they were needed.
PPF is a long-term investment scheme that offers great returns after maturity. The earlier you start investing in the scheme, the better returns you can expect at the end of the maturity period. This means investing when your age is a low number like 20 or 25, can be extremely beneficial later. It provides a higher rate of interest on savings in an account for 15 years, without any risk, and is cost-effective.
What is a PPF Calculator?
A PPF calculator is an online financial tool that makes it easy for you to calculate the return and interest on your contributions. PPF calculates the amount of your PPF account within a specific period taking into consideration the interest rate, initial amount, and tenure in which you want to invest. PPF calculation is a complex process, so it might be very difficult for you to do it manually. However, there is no need to worry because you can use an online PPF calculator that will make the entire process much easier and quicker.
Benefits of PPF Account
PPF, or a public provident fund investment scheme, is completely safe as it is backed by the government of India. This also means you have no risk of losing your hard-earned money. It can give you roughly 7.1 to 8.8% interest per year after taxes and compound annually.
Get to Extend your Tenure:
Unlike other investment options, you can extend your maturity tenure when it comes to Public Provident Fund. Generally, the PPF account has a lock-in period of 15 years. Once an investor completes this period, they can choose to close their accounts and take the amount that they have invested in their PPF account or if the account holder wishes to extend the period, they can extend it by 5 years.
Low on Risk High on Returns:
While most of these investments do yield high returns, the chances of losing your money are quite high as well. You would require very deep pockets if you want to take these risks on a regular basis. However, investing in a PPF account is a completely different story. The scheme enjoys government support and there is very little chance of losing money while investing in it.
- Tax Benefits:
A Public Provident Fund (PPF) account is one of the most tax-advantaged investments in India's financial markets. A PPF account can be opened with as little as Rs 500, and you can deposit a maximum of Rs 1,50,000, depending on the current limit. The most attractive feature of this savings instrument is its tax benefits.
Partial withdrawals from Public Provident Fund (PPF) accounts were introduced to make the investment scheme a little more attractive. PPF has a lock-in period of 15 years. Partial Withdrawals allow PPF account holders partial exit after the 5th year of deposit. This helps in financial planning, especially when some prior commitments can be met.