PPF Calculator for 15, 20, 25, 30 and 35 Years

Calculating on current interest rate.(8.0%) (2019)

PPF Account Features and Eligibility
Current Interest rate (​From 01.01.2019) 8.00% Per annum

Lock in Period 15 Years Extendable by 5 Years & so on
Minimum & Maximum Deposit Amount Minimum Rs. 500 and Maximum 1,500,000/ Per Year
Deposit Frequency Minimum One & Maximum 12 Deposits Per Years
Mode of Deposit Cash / Cheque / Online Transfer / Demand Draft
Tax Exemption Limit Rs. 1,50,000 (under 80C)
Loan Against PPF Account 25% of Closing Balance (between 3rd to 6th Financial Year)
Loan Interest Rate Interest Rate for the Financial Year + 2% Extra
Minimum and Maximum Age Limit Minimum 18 Years & No Maximum Age Limit

What is Public Provident Fund?

Introduced in 1968 by the National Savings Institute of the Ministry, PPF or Public Provident Fund remains one of the heighest interest paying schemes. It is also considered to be one of the safest investment products. Apart from the attractive interest rates, PPF account also offers tax benefits under 80C.

Interest Rate in PPF

Initially when the scheme was started by the National Savings Institute of the Ministry of Finance, the interest rate was 4.8% which kept on changing every year. Current interest rate in PPF Account is 8.00% w.e.f. 01-Jan-2019.

PPF Account Last 10 Years Interest Rates

Year Rate of Interest
From 1.4.1999 to 14.1.2000 12%
From 15.1.2000 to 28.2.2001 11%
From 1.3.2001 to 28.2.2002 9.5%
From 1.3.2002 to 28.2.2003 9%
From 1.3.2003 to 30.11.2011 8%
From 1.12.2011 to 31.3.2012 8.6%
From 1.4.2012 to 31.3.2013 8.8%
From 1.4.2013 to 31.3.2016 8.7%
From 1.4.2016 onwards 8.1%

The PPF calculator shows data for PPF investment made for 15 years, 20 years, 25 years, 30 years and 35 years at current year interest rate. You may not modify the interest rate here but you can do the same in offline PPF Excel Calculator. PPF account allows extension of scheme by 5 years which could be extended in last year of the scheme. Thus you can extend account to 20, 25, 30, 35 years and so on.

Benefits of PPF

PPF account is not just a savings account rather it is an account that offers a lot of benefit that no other savings scheme offers. It is considered to be the best investment that targets your requirement at the time of the retirement. The maturity period of this account is 15 years which makes the amount in the account accessible to the account holder at the time of the retirement. The maturity period of this account can be extended to 25-30 years. The following are the benefit that a PPF Account Offers-

Loan against PPF Account

Loan can be availed from the PPF Account at the time of the need. We often need funds to complete our need and to accomplish that we take loans. Loans can be easily availed from the PPF Account between the third and sixth financial year from the date of opening. Loan amount that can be availed is 25% of the balance available at the end of financial year. The interest chargeable is 2% more than the interest earned. For loan taken in 2019 interest will be charged (Interest Rate of 8%) + 2% = 10% interest rate will be charged on the loan amount which can be paid either in lump-sum or monthly installment  within 36 month time period.

Tax Exemption on PPF

Tax benefit is the best benefit that this account offers because of the tax benefit is provided in three ways to the account holder. The first benefit being the concession on the Income Tax Return which is capped to Rs.1.50 Lakhs. The interest earned on the PPF account is 100% tax free and the final amount that you get from investing the amount at the time of maturity is also tax free.

Accessible To Anyone

This account is for everyone who is of Indian nationality. Unlike EPF and VPF, Public Provident Fund is available to everyone who needs to open an account to save for his retirement. This scheme is not for NRI however, if you earlier had a PPF account then you can continue it up to the maturity period of 15 years.

Withdrawal in PPF Account

PPF Account Rules allows the account holder to withdraw the partial amount form the account from the seventh financial year which will not be taxed. The amount that can be withdrawn can be 50% of the total remaining balance in the account. To withdraw the amount you need to fill the Form-C with all the necessary details.

Account Limit for PPF Account

Only one account per person can be opened in his/her name which can be opened in a bank or Post office. If the PPF Account holder opens a second account then the second account will become invalid and the interest will not be paid to the individual. The interest will only be paid by taking permission from the Ministry of Finance by requesting to the Department of Economic Affairs.

Banks Offering PPF Account

There are 23 banks that offer PPF Account. The list of banks offering PPF account is as follows-

  • Allahabad Bank
  • Andhra Bank
  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank of India
  • Corporation Bank
  • Dena Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Oriental Bank of Commerce
  • Punjab and Sind Bank
  • Punjab National Bank
  • State Bank of India
  • UCO Bank
  • Union Bank of India
  • United Bank of India
  • Vijaya Bank

How Interest is Calculated in PPF?

According to the PPF rules, the interest rate is calculated on a monthly bases but the amount is reflected at the end of the financial year. The payment should be made before the 5th of the month to get interest for that month and the payment should be maximum of 12 in number. A total of 1.5 Lakhs can be deposited for that financial year either quarterly or on monthly bases, if the amount exceeds the limit then the interest will not be paid for that amount.  Below is an example that shows how the interest rate is calculated on both monthly payment as well as yearly payments.

Monthly Payment in PPF Account

Monthly Deposit: Rs. 12,500/

Interest Rate: 8.0%

Date of Payment Balance before 5th of the Month Balance at the End of the Month Interest Earned
4-Apr-17 12,500.00 12,500.00 82.50
4-May-17 25,000.00 25,000.00 165.00
4-Jun-17 37,500.00 37,500.00 247.50
4-Jul-17 50,000.00 50,000.00 330.00
4-Aug-17 62,500.00 62,500.00 412.50
4-Sep-17 75,000.00 75,000.00 495.00
4-Oct-17 87,500.00 87,500.00 577.50
4-Nov-17 100,000.00 100,000.00 660.00
4-Dec-17 112,500.00 112,500.00 742.50
4-Jan-18 125,000.00 125,000.00 825.00
4-Feb-18 137,500.00 137,500.00 907.50
4-Mar-18 150,000.00 150,000.00 990.00
Total 150,000.00 156,435.00 6,435.00

This is the monthly calculation of the PPF amount. You must note that all the payment is initiated before the 5th of the month to avail the interest for that month. It the payment is made after the 5th of the month then the interest will not be paid for that month.

In this chart, the total amount that is paid is 1,50,000 Lakhs for which the interest earned is Rs.6,175 and closing balance for that financial year is 1,56,175.00. When the payment is continued for the next 15 years then the maturity amount will be Rs. 41,10,763.70.

Annual Payment in PPF Account

Yearly Deposit: Rs. 1,50,000/

Interest Rate: 8.0%

Date of Payment Balance before 5th of the Month Balance at the End of the Month Interest Earned
4-Apr-17 150,000.00 150,000.00 990.00
4-May-17 150,000.00 150,000.00 990.00
4-Jun-17 150,000.00 150,000.00 990.00
4-Jul-17 150,000.00 150,000.00 990.00
4-Aug-17 150,000.00 150,000.00 990.00
4-Sep-17 150,000.00 150,000.00 990.00
4-Oct-17 150,000.00 150,000.00 990.00
4-Nov-17 150,000.00 150,000.00 990.00
4-Dec-17 150,000.00 150,000.00 990.00
4-Jan-18 150,000.00 150,000.00 990.00
4-Feb-18 150,000.00 150,000.00 990.00
4-Mar-18 150,000.00 161,880.00 990.00
Total 150,000.00 150,000.00 11,880.00

This is the Yearly calculation of the PPF amount. You must note that all the payment is initiated as a lump sum amount for which a total of 11,400 is earned as an interest which is higher than the monthly payment therefore, it is recommended to have your PPF Account Payment to be initiated as a Lump Sum amount.

Premature Closure of PPF Account

Premature Closure is allowed from the 5th financial Year and only in the case of life-threatening diseases, child education etc. for which you have to submit the required documentation. A penalty of 1% will be charged when the account is closed prematurely. For example- The interest rate of the account at the beginning of the PPF Account was 8% which will reduce to 7% and the interest rate will be calculated with 7%.

Nomination in PPF Account

PPF Account offers the account holder to add more than one nominee for the account. Nomination can be done on share bases meaning you can decide the amount of shares one of the nominees gets. You can also cancel the nominee at any point in time during the PPF Account period. You cannot nominee a Trust organization as a nominee in the PPF Calculator. Being a nominee does not mean you can continue the PPF Account in case of the death of the account holder.

PPF Account for Minors

Parents of children are allowed to open an account in behalf of the Children. However, both the parents cannot open a separate account for the same child. If both the parents are demised them the legal guardian can open this account in behalf of the minor. When the minor attains maturity then the minor will be treated as PPF Account holder and the guardian/ parents will not be the account holder.

Joint PPF Account

PPF Account does not allow opening a Joint account however, you can open separate account for your spouse. What so ever the case is if a single person has more than two accounts then the person’s second account will be invalid and no interest will be paid to the account holder.

How to transfer PPF Account?

PPF Account is transferable from the Post Office to the Bank account and vice versa. You can also transfer from branch to branch and transferable is free of cost. Transfer of the PPF Account can take up to a Month. To transfer the PPF account you can follow the following steps

  • Visit the bank or Post Office Branch with your PPF Passbook.
  • Submit the Transfer Request Form with the details like new bank branch address for which you will receive a transfer receipt.
  • The existing bank branch will send the details to the new branch
  • After receiving the details the new bank branch will contact you, after that you need to submit a new account opening form along with old PPF Passbook

The verification process will be done with valid ID's like Aadhar Card, PAN Card etc.

 
Disclaimer: The information provided by the above calculator is for illustrative purposes only. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult bank or financial professional prior to relying on the results. We will not be liable for any loss or damage for any decision taken on the basis of this data.