If You Invested in PPF You Should Know
Your PPF Calculation
Public Provident Fund (PPF) is the savings-cum-tax saving scheme of the Central Government in India (launched by the National Savings Institute of the Ministry of Finance in 1968). The aim is to make small savings in the combination of income tax benefits by providing an investment with appropriate yields.
PPF was established in India in 1968 to raise small savings as an investment, coupled with a return on it. The yield is tax-free. It can also be called Savings-cum-Tax Savings Investment Vehicle, which allows creating a pension fund while saving on annual income. Therefore, a PPF account should be opened by anyone looking for a safe investment option to save taxes and get guaranteed returns.
PPF calculator is an easy PPF calculation web tool. If you are saving/investing cash under the PPF system, you may find this small tool helpful for doing some calculations, e.g., The interest received in this period or how your investment grew over the years, the final maturity amount, etc. are only recorded in the annual deposit and it calculates your interest/balance (table/chart) for the next 15 financial years.
The PPF Return calculator is an easy to use tool that can assist you in conducting even the most complex calculations linked to PPF easily. You can readily calculate the year-wise PPF returns you can earn by contributing to your PPF account over a predetermined time and with a particular frequency using the online PPF calculator. The online PPF calculator is a versatile instrument and it is pointless to use distinct bank-specific calculators such as SBI PPF calculator, PNB PPF calculator, India Post PPF calculator or HDFC PPF calculator.
How is PPF interest calculated?
Annually, interest in PPF is compounded. F = P[({(1+i)^n}-1)/i ] is the formula for this.
Here, F = maturity proceeds of the PPF
P= yearly installments
n = year number
I = interest rate/100
For example, if you make Rs.1, 00,000 annual payments to your PPF investment at 8.0 percent for 15 years, your maturity earnings would be ₹ 29, 32,428 at the end of 15 years.
Click "Calculate" to get instant details about PPF maturity amount, PPF interest earned, total PPF investment and much more.
Benefits of Public Provident Fund
- The risk factor for investing in PPF is small because the government supports it.
- It is possible to open PPF account in nationalized banks, public sector banks, post offices and select private banks, which all have a broad reach.
- Although the lock period is for PPF for 15 years, the rules are for withdrawing some cash or taking a loan after seven years. Compared to bank FD, yields from PPF are more attractive.
- PPF deposits are classified as EEE (exempt-exempt-exempt) deposits. That is, the principal invested, interest earned and income received at maturity are all exempt from tax. The amount deposited in the PPF account of the spouse or child is also exempt from tax.