PPF Calculator: If you’re considering investing, the PPF scheme could be a great fit for you. The PPF scheme is a savings scheme backed by the Government of India that offers investors safe and stable returns. It’s not only a reliable long-term investment option, but also offers tax exemptions and compounding interest benefits. PPF has a lock-in period of 15 years, allowing investors to deposit funds annually as per their convenience.
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Learn how much you can invest
You can invest a minimum of ₹500 and a maximum of ₹1.5 lakh annually in the PPF scheme. It can be easily opened at any bank or post office. The biggest advantage of this scheme is that the investment amount is exempt under Section 80C of the Income Tax Act. Furthermore, the interest earned and the entire maturity amount are tax-free, making it a completely safe and profitable investment.
Know the interest rate
Currently, PPF offers an annual interest rate of 7.10 percent. The interest is compounded annually, meaning interest accrues on your deposit, and the capital continues to grow. From the seventh year onwards, you can make partial withdrawals from your account. After the 15-year term is complete, you can extend it for another 5 years. This increases both your investment and interest.
A strong return on an investment of ₹1 lakh
If you deposit ₹1 lakh into your PPF account every year, your total corpus can reach ₹2,712,139 after 15 years. This will result in an investment of ₹1.5 million, and you will receive approximately ₹1,212,139 in interest. This creates a substantial corpus.
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How to open an account
To open a PPF account, you must apply at a bank or post office branch. This requires filling out a form and submitting identification proof such as your Aadhaar card, PAN card, voter ID, passport, or driving license. Address proof and two passport-size photographs are also required. Many banks now offer this facility online, allowing you to open a PPF account from the comfort of your home.
