PPF Interest Rate

PPF Account Details
Current PPF interest rate
7.10% w.e.f. 1st January 2021
Lock-in period 15 years
Minimum Account ₹ 500
Tax on PPF interest
Nil, tax-exempted

PPF Calculator Introduction

SBI PPF is a government-regulated PPF account scheme, which is distributed through SBI branches. SBI PPF deposits allow a maximum limit of ₹ 1.50 Lakh once a year for a maximum tenure of 15 years. Currently, the interest rates offered by SBI on a PPF account are 7.10%. You can invest in an ICICI PPF account starting from ₹ 500 to ₹ 1.50 Lakh during a fiscal year using various methods like cash, cheque, or online through an ICICI bank account. Current ICICI PPF interest rates are 7.10%, last updated on 1st October 2020. PPF account interest rates are determined quarterly, and currently, PPF Interest Rates on the India Post Office PPF account is 7.10%

What is the PPF Calculator?

PPF Calculator is a financial tool to work out the ratio of return on the investment amount by keeping track of your investment. You can also determine the yearly withdrawal limits on your PPF accounts by using the PPF calculator.

How is PPF interest calculated?

The investment return on your PPF accounts are often calculated using the formula A= P [({(1+i)^n}-1)/i] where

  • A= Final amount realized on maturity
  • P= Principal investment amount
  • i= rate of interest (subject to quarterly government changes )
  • n= period of investment

PPF Maturity Calculation

Suppose, if you deposit a hard and fast amount of ₹ 1,000 in your PPF account for 15 years at a rate of interest of 7.10%, then the amount received at the top of tenure is going to be ₹ 27,121. If you’ve got availed a loan against your PPF account at the start of the 3rd fiscal year from opening the account, you can receive a maximum loan amount of ₹ 555.

PPF Tax Benefits

Investing your money in PPF accounts also provides benefits of tax relaxations under specified limits. Under section 80C of the tax Act, you can get tax exemptions for investments up to 1.5 Lakhs. The principal amount, maturity amount, and interest earned on PPF investments are subject to exemption from the taxes.

PPF Tax Exemption Limit

Your PPF account falls under the Exempt, Exempt, and Exempt tax basket. Your annual contribution qualifies for tax deductions under Section 80C of tax. Contribution by your spouse and youngsters in your PPF account also qualifies for PPF tax benefits. The tax concession is capped at ₹ 1.50 Lakh of your total income during a fiscal year. Interest earned on PPF accounts and maturity proceeds is tax exempted too.

How to Transfer a PPF Account?

You can request to transfer your PPF account from one branch to a different or post office freed from cost. The steps are as follows:

You can approach the bank where the account is maintained and refill the transfer form.

The existing bank will forward the shape, account opening application, nomination form, specimen signature, and cheque/ dd for the account’s balance amount to the new bank or branch specified by you.

Once the new branch receives the documents, they can ask you to submit a replacement form alongside your old passbook. You can also give the name of a replacement nominee. You’re also advised to submit KYC documents. After a couple of weeks, you can check the status online. If it’s not updated under the PPF account, you want to inquire with the local branch.

PPF Calculator for Interest Rate

PPF calculator for interest is a web financial tool that performs various calculations associated with your PPF account. This calculator helps you calculate the PPF account rate of interest earned on your investment and, therefore, the maturity amount after 15 years.

How to use PPF Calculator?

PPF calculator calculates the interest for each year on the idea of initial details given by you. You’re required to settle on the sort of deposit (fixed amount or variable) and the amount deposited per annum. It is assumed that you simply are depositing the amount on 1st April per annum. Then the interest is calculated for the fiscal year supported by the prevailing market rate. PPF interest calculator also estimates the entire amount of investment made by you till a specific year.

PPF Calculator for Investment Periods

The tenure of investments in PPF accounts is inversely proportional to the amount of interest you earn on your PPF investments, suggesting that you will earn more interest once you invest for an extended period.

Consider this instance to know better the connection between the investment period and interest earned on PPF accounts. If you’ve got invested ₹ 10,000 for 1.5 years at a 7.90 speed of interest, you can earn an interest amount of 1.4 Lakhs. The maturity value for your investments, during this case, would be ₹ 2.90 Lakh, and if you increase your investment of 1.5 Lakhs to three Lakhs, say for 30 years, the maturity value will increase multiple times and would be ₹ 12 Lakh with ₹ 9 Lakh because the interest earned. Thus continuing your investments for extended periods can help you to earn great returns on your investments.

FAQs about PPF Calculator

How is interest on PPF calculated?

The PPF Calculator computes interest every month based on the rate of interest decided by the government. However, the interest is credited to the account at the end of the financial year.

Is PPF interest tax-free?

Yes, PPF interest is exempt from income tax.

When can I withdraw money from the PPF account?

Fill Form 2 with complete details and mention the number of years passed from the date the account was first opened.

Can I take the loan against the PPF account?

Yes, you can take the loan against a PPF account, which cannot exceed 25% of the balance at a rate of interest, which is 1% higher than the PPF interest rate.

What can I do after PPF maturity?

You can choose to either withdraw your maturity amount or opt for an extension of PPF duration by 5 more years.

What is the interest rate of PPF in SBI?

SBI does not have a separate PPF scheme, and they only provide the related banking facility. The current interest rate on PPF is 7.10%, effective from 04 January 2021

Is PPF interest the same in all banks?

PPF is a government-run scheme; thus, the interest rate is the same in all banks for PPF.

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