Public Provident Fund (PPF) Calculator

PPF Interest Calculator

PPF or public provident fund is one of the popular savings schemes in India, which also saves on tax. It was introduced by National Savings Institute in 1968, under the Ministry of Finance. A PPF interest calculator on Loanbaba is an online financial tool that helps you calculate the interest earned on your PPF account. It also calculates the maturity amount that you are entitled to get after 15 years of this investment.

PPF is one of the investment schemes, which offers Exempt, Exempt, Exempt (EEE) benefit, tripling tax exemption in below-mentioned ways:

  • Interest on PPF is completely exempted of tax.
  • The maturity amount on the scheme is also 100% tax exempted.
  • Income tax benefit up to Rs. 150,000 can be availed on PPF, under the Section 80C of tax saving investment.

PPF Interest Rate 2019

Here is a look at PPF interest rate 2018 and 2019.

PPF Account

Details

PPF Current Interest Rate

8% from 1 January, 2019

Lock in period

15 years

Minimum Deposit Amount for a Year

Rs. 500

Tax Applicable on PPF interest

No tax applied

Facts about PPF Interest Rates 2019

  • Interest rate on PPF is fixed quarterly by the Government of India’s Ministry of Finance from 1 April, 2016.
  • Interest rate on PPF is compounded annually.
  • Current PPF rate offer by banks is 8%, with effect from 1 January 2019.
  • PPF calculator calculates the interest earned as per the type of investment (variable or fixed) and the maturity amount.

SBI PPF Account

Public Provident Fund by SBI (State Bank of India) is a government scheme that is distributed through the bank branches and post offices, and every bank branch in India. You can add nominees to your account and manage the services and the account online. To open SBI PPF account, you can visit the nearest branch and fill the PPF form to carry out the required formalities.

You can use the free-of-charge online PPF calculator SBI to calculate the earned interest.

How to Open PPF Account in SBI, Other Banks, and Post Offices?

  • You can open a PPF account in any nationalized bank, authorized private bank, or a post office.
  • Visit the bank/post office/financial institution and fill the PPF form and submit it with the deposit amount to the bank.
  • Minimum deposit that you have to make is Rs. 500 in a year.
  • You can deposit a maximum of Rs. 1.50 lakhs in the account.
  • Any deposit amount exceeding this threshold will not earn any interest.
  • Deposit can be made in 12 instalments in a year or in lump-sum.
  • Entire amount withdrawal can be done at maturity or after 15 years.

How Does PPF Interest Calculator by Loanbaba Work?

The online PPF calculator 2019 works in the following ways:

  • It calculates the interest earned for every year. The interest earning will depend on the type of deposit, fixed or variable and the amount you deposit every year.
  • The calculator also provides an estimate of the total amount of investment you make in this investment, for a particular financial year.
  • It is assumed that the amount deposited in this scheme is done on 1st April, every year. This way, the interest is calculated for a financial year according to the prevailing market rate.

Below given is the Public Provident Fund Calculator that you can use free-of-cost on our website.

Frequently Asked Questions on PPF Scheme

Below given are some of the important questions asked about Public Provident Fund.

  • addFAQs
    1. Who can open a PPF account?
    2. Below are the details of who can apply for a PPF account.

      • Any Indian resident who is over 18 years of age can open a Public Provident Fund account. A person can have just one account in his name.
      • The account can be opened in for a minor as well, but it must be done so by the parents and the account must have the names of their children. Grandparents cannot such account for their grandchildren.
      • HUF (Hindu Undivided Family) cannot open the account. But if a PPF account was opened by HUF before 13 May, 2005, then that can be continued to maturity period without any further extensions.
      • NRIs are not eligible to open PPF account. But, non-resident Indians who had a PPF account can continue the same until the maturity of 15 years.
    3. What is the PPF maturity period?
    4. The PPF account matures after 15 years from its opening date.  You can extend the account for a block of 5 years. To extend the maturity of your PPF account, you need to submit Form H in the bank within a year from the maturity date. There is no limit to the number of times you request for an extension. But, you can withdraw only up to 60% of your account balance at the start of the extension period. Withdrawal is restricted to once in a particular financial year.

    5. What are the PPF maturity and withdrawal options?
    6. You can withdraw from your Public Provident Fund account, after it completes at least 7 years from its date of first deposit, subject to an upper limit of 50% of the amount available in the account. You can only make a complete withdrawal on scheme’s maturity or on demise.

    7. Can I close my PPF account before its maturity date?
    8. In 2016, an amendment was made in PPF scheme to facilitate premature closing of the account. You can close the account after it completes at least 5 years. But premature closure is only allowed if the reason for the same is to fund higher education or for medical treatment of family member. If you close your PPF account before its maturity then you have to pay 1% of your account balance as penalty to the bank.

    9. Can I apply for a loan against a PPF account?

    Yes, you can avail a loan on your Public Provident Fund between the 3rd and 6th financial year of opening this account.

    • You can get up to 25% of the account balance at the end of 2nd year preceding the year in which the loan was applied for, as loan amount.
    • Interest on a loan against PPF is charged at 2% more than the interest earned on the deposit. For instance, if the interest earned on your account is 8%, then the interest on the loan will be 10%.
    • You can repay the loan amount in 2 or more monthly instalments or in lump-sum within 36 months period.
    • No loan can be taken from the 7th year of opening of account, reason being that you become eligible to make partial withdrawals.
    • After repayment of the principal amount, interest of the loan is repayable in not more than 2 monthly instalments.
    • You can reapply for a second loan after successfully repaying the previous loan.

Disclaimer: All information stated is purely for informational purpose. The PPF interest rates and scheme information may differ from what is here on the page, given any recent changes in bank and government policies.

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