If you are a conservative investor who always loves investing in fixed deposits, then PPF may be a great choice. Public Provident Fund or the PPF is a small saving scheme in India. PPF offers 7.9% interest rate for the October to December quarter. PPF interest rates are revised each quarter.
So Why is PPF a Great Investment?
PPF currently offers interest rate of 7.9% which is much higher than 6.5%-7% a year offered by fixed deposits. What makes PPF really great are the tax benefits. PPF enjoys the EEE exemption or falls under the Exempt, Exempt, Exempt regime. The investment in PPF enjoys the Section 80C deduction up to Rs 1.5 Lakh a year while the PPF interest and amount withdrawn at maturity are tax free. High interest coupled with tax benefits makes PPF an excellent investment.
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See Also: PPF Account Rules
The PPF calculator helps calculate the returns got through PPF investment. With online PPF calculator, you can easily calculate yearwise PPF returns. All you must do is enter the tenure, deposit frequency, investment amount and PPF interest rate.
See Also: Everything You Need To Know On Public Provident Fund
Let’s say you invest Rs 1.5 Lakhs each year for a period of 15 years. We assume PPF interest rate of 7.9%. How much will PPF investment grow in 15 years?
Year |
Opening Balance (Rs) |
Amount Deposited (Rs) |
Interest (Rs) |
Closing Balance (Rs) |
1 |
0 |
150000 |
11850 |
161850 |
2 |
161850 |
150000 |
24636.15 |
336486.15 |
3 |
336486.15 |
150000 |
38432.40585 |
524918.5559 |
4 |
524918.5559 |
150000 |
53318.56591 |
728237.1218 |
5 |
728237.1218 |
150000 |
69380.73262 |
947617.8544 |
6 |
947617.8544 |
150000 |
86711.8105 |
1184329.665 |
7 |
1184329.665 |
150000 |
105412.0435 |
1439741.708 |
8 |
1439741.708 |
150000 |
125589.595 |
1715331.303 |
9 |
1715331.303 |
150000 |
147361.173 |
2012692.476 |
10 |
2012692.476 |
150000 |
170852.7056 |
2333545.182 |
11 |
2333545.182 |
150000 |
196200.0694 |
2679745.251 |
12 |
2679745.251 |
150000 |
223549.8749 |
3053295.126 |
13 |
3053295.126 |
150000 |
253060.315 |
3456355.441 |
14 |
3456355.441 |
150000 |
284902.0799 |
3891257.521 |
15 |
3891257.521 |
150000 |
319259.3442 |
4360516.865 |
Take a look at the chart. You get nearly Rs 44 Lakhs after 15 years.
See Also: How To Open PPF Account Online?
Press calculate and get PPF maturity amount and PPF interest earned.
Period |
Rate |
July – September, 2019 |
7.90% |
April –June, 2019 |
8% |
January –March, 2019 |
8% |
October-December, 2018 |
8% |
July-September, 2018 |
7.60% |
April-June, 2018 |
7.60% |
January-March, 2018 |
7.60% |
October–December, 2017 |
7.80% |
July–September, 2017 |
7.80% |
April–June, 2017 |
7.90% |
January–March , 2017 |
8.00% |
October–December, 2016 |
8.10% |
July–September, 2016 |
8.10% |
April–June, 2016 |
8.10% |
April 2015– March 2016 |
8.70% |
April 2014 – March 2015 |
8.70% |
April 2013 – March 2014 |
8.70% |
April 2012 – March 2013 |
8.80% |
December 2011 – March 2012 |
8.60% |
April 2011 – December 2011 |
8.00% |
April 2010 – March 2011 |
8.00% |
April 2009 – March 2010 |
8.00% |
April 2008 – March 2009 |
8.00% |
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