PPF Interest Rate Calculator
|PPF Current Interest Rate
|Lock in period
|Minimum Deposit Amount for a Year
|Tax Applicable on PPF interest
||No tax applied
PPF Interest Rate Calculator calculates the maturity or the interest earned on a Public Provident Account. PPF is a savings scheme for Indians, which also allows saving taxes. This scheme was introduced by the National Savings Institute in 1968. This account was launched under the Ministry of Finance. With the PPF interest calculator on Loanbaba, you can calculate the interest and maturity amount over different tenures of investment in the said savings schemes. The online tool on the website is free of cost.
The initial maturity period is 15 years, but you can apply for premature closure under certain conditions. You can also initially extend the PPF account tenure by 5 years. After a year from extension, you can again apply to extend the period further. PPF is one of the investment schemes, which offers Exempt, Exempt, Exempt (EEE) benefit, tripling tax exemption in the below-mentioned ways:
- The interest you earn on the PPF account is exempted from any tax
- Thus, the maturity amount in total is 100% free of taxes
- Under Section 80C of the Income Tax Act, the tax benefit for Public Provident Fund is up to Rs. 150,000
In this post, we will discuss PPF interest rate facts, how to open a PPF account, PPF interest online calculator, and frequently asked questions.
PPF Interest Rate Information
- It is the Ministry of Finance under the Government of India that fixed the interest rate on PPF. The same is fixed quarterly and may keep changing. So, you must keep a lookout for the latest PPF interest rate at every quarter for the recent update
- The current rate of interest on the Public Provident Fund scheme is 7.10%
- The interest is compounded annually on the PPF account
- PPF calculator calculates the interest earned as per the type of investment (variable or fixed) and the maturity amount
How to Open a PPF Account in SBI, Other Banks, and Post Offices?
- Several authorized private banks nationalized banks, and post offices allow you to open a Public Provident Fund account
- You can either physically visit the institution to submit the PPF form or download the form online and then submit the same. Along with the form submission, you have to also deposit the investment amount into the PPF account
- The lowest deposit amount in PPF is Rs. 500 in a year. But you can deposit any amount up to Rs. 1.50 lakhs in a year
- Remember, if you wish to put an amount over Rs. 150,000, the same will not earn any interest. So better invest the rest of the available money over this threshold in another investment or savings scheme
- You can deposit either in lump-sum or in installments throughout the year. You can deposit in 12 installments.
- You can withdraw the complete maturity amount after 15 years. After maturity, you can withdraw the entire account balance (principal + interest). If you withdraw any early, then the only partial amount will be available for withdrawal
- There are certain conditions under which you can make partial withdrawal such as higher education of dependent children or self, medical emergency, change in the residency status
How Does PPF Interest Calculator by Loanbaba Work?
The online PPF calculator 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 is the Public Provident Fund Calculator that you can use free of cost on our website.
Frequently Asked Questions on PPF Scheme
Below are some of the important questions asked about the Public Provident Fund.
Below are the details of who can apply for a PPF account.
- If you reside in India and are over 18 years of age, then you can open a PPF account. You can have only one account in your name. So, multiple accounts are not possible under the same KYC.
- It is possible to open an account in the name of a minor. But it is necessary to do so under the guardianship of parents. It is not allowed for grandparents to open an account for their grandchildren.
- NRIs cannot open a PPF account. But NRIs who have had the account already can continue the same till the usual maturity period of 15 years.
- Hindu Undivided Family cannot enjoy the facility of the Public Provident Fund. But HUFs who have had this account before May 13, 2005, can continue the scheme till the maturity period. However, the maturity period cannot extend beyond the one agreed at the date of account opening.
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 to the bank within a year from the maturity date. There is no limit to the number of times you request 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.
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 the scheme’s maturity or demise.
In 2016, an amendment was made to the PPF scheme to facilitate the 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 members. If you close your PPF account before its maturity then you have to pay 1% of your account balance as a penalty to the bank.
- 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 the 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 7.10%, then the interest on the loan will be 9.10%.
- You can repay the loan amount in 2 or more monthly installments or a lump-sum within a 36 months period.
- No loan can be taken from the 7th year of opening of an account, the reason being that you become eligible to make partial withdrawals.
- After repayment of the principal amount, the interest of the loan is repayable in not more than 2 monthly installments.
- You can reapply for a second loan after successfully repaying the previous loan.
Disclaimer: All information stated is purely for informational purposes. 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.