PPF Calculator

Last Updated 31st Mar 2020

PPF Interest Rate in All Banks

PPF Account Details
Current PPF interest rate 7.90% w.e.f. 1st January, 2020
Lock in period 15 years
Minimum Account Rs. 500
Tax on PPF interest Nil, tax exempted
  • Interest payable on PPF is fixed quarterly by Ministry of Finance, Government of India from April 1st, 2016.
  • Banks offer PPF accounts at the rate fixed by Indian Government. Current PPF interest rates offered by all banks is 7.90% as applicable from 1st January, 2020.
  • PPF calculator calculates the maturity amount and interest earned depending upon the type of investment you make (fixed or variable).
Calculate PPF Maturity Amount @ 7.90%
Rs.
FD Offers with High Returns offerOffers
Bank/NBFCs Rate Tenure Action
Bajaj Finance8.05%60 MonthsAPPLY
PNB Housing Finance7.95%120 MonthsAPPLY

PPF Interest Rate 2020

Period PPF Interest Rates
1st January, 2020 onwards 7.90%
1st October, 2019 - 31st December, 2019 7.90%
1st July, 2019 - 30th September, 2019 7.90%
1st April, 2019 - 30th June, 2019 8.00%
1st January, 2019 - 31st March, 2019 8.00%
1st October, 2018 - 31st December, 2018 8.00%
1st July, 2018 - 30th September, 2018 7.60%
1st April, 2018 - 30th June, 2018 7.60%
1st January, 2018 - 31st March, 2018 7.60%
01st October 2017 - 26th December 2017 7.80%
01st July 2017 - 30th September 2017 7.80%
01st April 2017 - 30th June 2017 7.90%
01st January 2017 - 31st March 2017 8.00%
01st October 2016 - 31st December 2016 8.00%
01st July 2016 - 30th September 2016 8.10%
01st April 2016 - 30th June 2016 8.10%
01st April 2015 - 31st Mar 2016 8.70%
01st April 2014 - 31st Mar 2015 8.70%
01st Apr 2013 - 31st Mar 2014 8.70%
01st Apr 2012 - 31st Mar 2013 8.80%
01st Dec 2011 - 31st Dec 2012 8.60%
01st Mar 2003 - 30th Nov 2011 8.00%
01st Mar 2002 - 28th Feb 2003 9.00%
01st Mar 2001 - 28th Feb 2002 9.50%
15th Jan 2000 - 28th Feb 2001 11.00%
01st Apr 1986 - 14th Jan 2000 12.00%

Public Provident Fund

PPF or public provident fund is a saving cum tax saving scheme, introduced by National Savings Institute under Ministry of Finance in 1968. The objective of PPF scheme is to encourage savings by offering attractive rate of interest combined with the tax benefits. PPF is one of a very few investment schemes that offer EEE (Exempt, Exempt and Exempt) benefit that triples your tax exemption in the following ways:

  • Income tax benefit under Section 80C on invested amount (subject to overall limit of Rs. 150,000/- under 80-C).
  • Interest on PPF is 100% tax exempted.
  • PPF maturity amount is totally tax exempted.

SBI PPF Account

SBI PPF is a government PPF account scheme, which is distributed through SBI branches, Post Offices and all banks branches in India. Interest rate on SBI PPF is as announced by government quarterly. PPF deposits have a maximum limit of Rs. 1.5 lakh per annum, with a maximum tenure of 15 years. PPF accounts allow the investors to get loans against PPF and also offers tax benefits, nomination facility, and online services to manage PPF accounts. To open an account under SBI PPF Scheme, you are required to visit the nearest branch of the bank that offers this facility, fill the PPF Form 1 and carry out the necessary formalities.

ICICI PPF Account

The process of opening a PPF account with ICICI Bank is simple and instant. You can invest in a PPF account using various methods such as cash, cheque or transfer funds online through ICICI savings account for a tenure of 15 years. You can also earn an attractive interest rate of 7.9% on your PPF account, which is fully exempted from Income tax under section 80C. The limit for investing in ICICI PPF account ranges after Rs. 500 to Rs. 1.5 Lakhs.

ICICI PPF Interest Rate

The interest on PPF is calculated monthly 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. Current ICICI PPF interest rates are 7.90%, last updated on 1st January, 2020.

How to open PPF account in SBI, Post office, other banks?

  • You can open PPF account in post office or with nationalized banks or authorized private banks.
  • Minimum amount required to maintain PPF account is Rs. 500 per year.
  • You can deposit a maximum amount of Rs. 150,000 lacs in your PPF account. Any amount deposited in excess of Rs. 150,000 lacs in a financial year will not earn any interest. You can deposit the amount in as many installments in a year in the multiple of Rs. 50.
  • Entire amount of PPF can be withdrawn at maturity after 15 years.
  • Interest earned on PPF account is tax exempted and principal amount is subject to tax deductions under section 80c of income tax act. Interest rate on PPF is compounded annually.

What is PPF Calculator?

PPF Calculator is a financial tool to determine the ratio of return on the amount of investment 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 can be calculated using the formula A= P [({(1+i)^n}-1)/i] where
A= Final amount realised on maturity
P= Principal investment amount
i= Interest rate (subject to quarterly government changes )
n= period of investment

Who can open PPF account?
  • Indian residents of age 18 years and above can open PPF account. Only one account per person can be opened.
  • PPF account can also be opened in the name of minor. Parents can open PPF account in the name of their children, but grandparents cannot open the account in name of their grandchildren.
  • Non- Residents of India are not eligible to open PPF account. However, NRIs of Indian origin who earlier had PPF account can continue their account until the lock in period of 15 years ends, but they cannot make further contribution in their PPF account.
  • Hindu Undivided Family cannot open PPF account but the account opened before 13th May, 2005 can be continued without any further extensions in maturity period.

PPF Tax Benefits

Investing your money in PPF accounts also provides benefits of tax relaxations under specified limits. Under section 80C of the Income 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 all subject to exemption from the taxes.

PPF tax exemption limit

  • Your PPF account falls under Exempt, Exempt and Exempt tax basket. Your annual contribution qualifies for tax deductions under Section 80C of income tax. Contribution by your spouse and children in your PPF account also qualifies for PPF tax benefits. Tax concession is capped at Rs. 150,000 of your total income in a financial year.
  • Interest earned on PPF account and maturity proceeds are tax exempted too.

How to Transfer a PPF Account?

You can request to transfer your PPF account from one branch to other or post office free of cost. The steps are as follows:

  • You can approach the bank where the account is maintained and fill up the transfer form.
  • The existing bank will forward the form, account opening application, nomination form, specimen signature and cheque/ dd for balance amount in account to new bank or branch specified by you.
  • Once the new branch receives the documents, they may ask you to submit new application form along with your old pass book. You can also give name of a new nominee. You are also advised to submit KYC documents.
  • After few weeks, you can check the status online. If it is not updated under PPF account then you must enquire with local branch.

PPF Interest Calculator

PPF interest calculator is an online financial tool that performs various calculations related to your PPF account. This calculator helps you to calculate the PPF account interest rate earned on your investment and the maturity amount after 15 years.

How to use PPF Calculator?

  • PPF calculator calculates the interest for every year on the basis of initial details given by you. You are required to choose the type of deposit (fixed amount or variable) and the amount deposited every year.
  • It is assumed that you are depositing the amount on 1st April every year. Then the interest is calculated for financial year based on the prevailing market rate.
  • PPF interest calculator also gives you an estimate about the total amount of investment made by you till a particular year.

PPF Calculation for Investment Periods

The tenure of investments in PPF accounts is inversely proportional to the amount of interest you earn on your PPF investments, which means that you will earn more interest when you invest for a longer period.

Consider this example to understand better the connection between the investment period and interest earned on PPF accounts. If you have invested Rs. 10,000 for 1.5 years at a 7.90 % rate of interest, you will earn an interest amount of 1.4 Lakhs. The maturity value for your investments, in this case, would be 2.9 lakhs, and if you increase your investment of 1.5 Lakhs to 3 Lakhs, say for 30 years, the maturity value will increase multiple times and would be Rs. 12 Lakhs with 9 Lakhs as the interest earned. Thus continuing your investments for longer periods can help you to earn great returns on your investments.

PPF Maturity Period

The maturity period of PPF account is 15 years from the date of opening. Thereafter, you can extend its maturity by submitting an application. You can extend your PPF account for a block of five year.

  • PPF Maturity and withdrawal Options
    Withdrawal from PPF is allowed after completion of 7 years from date of first deposit subject to maximum of 50% of the money available in the account. Complete withdrawal can be done only after the maturity or on demise.
  • Extension of your PPF account tenure with contribution
    In this option, you can extend your PPF account for a five year block by submitting Form H in bank within one year from the date of maturity. You can deposit money during the tenure. After completion of five year you can again apply for extension as there is no limit in the number of extensions.
    However, you can withdraw only 60 percent of your account balance at the beginning of the extension period. The withdrawal is restricted to one time in a financial year.

Loan against PPF Account

  • You can avail loan from your PPF account between third and sixth financial year of opening account.
  • The loan amount is restricted to 25% of the balance at the end of second year preceding the year in which loan is applied for. E.g. If a loan is applied in 2015-16 then 25% of balance at the end of 2013-14 can be taken as loan.
  • No loan can be taken from seventh year of opening the account as you become eligible for partial withdrawal.
  • The loan amount is repayable in lump sum or in two or more monthly installments within 36 months period.
  • After the principal amount is repaid, interest on loan taken from PPF account is repayable in not more than two monthly installments.
  • Interest on loan is charged 1% more than the interest earned on deposits made in PPF account. For example, if interest earned on PPF account is 8 % than interest charged on loan will be 10%.
  • If you fail to repay the loan within 36 months, 6% extra interest than normal interest will be charged and the amount will be debited from your PPF account at the end of each financial year.
  • You can take second loan after repaying the first one.

Deactivation of PPF account

You must deposit minimum Rs. 500 every year to maintain your PPF account. If you fail to deposit the minimum amount, your PPF account will be deactivated and penalty will be charged. To reactivate your PPF account you need to pay penalty of Rs. 50 for each inactive year and Rs. 500 as each inactive year’s contribution.
In case of your demise, the amount will be handed over to your legal nominee even before maturity. Your legal nominee is not eligible to continue your account.
In case, balance in your PPF account is more than Rs. 150,000 then your nominee will have to prove his/her identity to claim the amount.

Premature closure of PPF Account

The Public Provident Fund Scheme, 2019 has introduced a Form 5 to facilitate premature closure of PPF account after 5 years of completion. Change in the residency status of the account holder has also been added as a third ground for premature closure of the PPF account. It has also extended the existing ground of higher education of self to higher education for dependent children. In case of premature closure, you are required to pay 1% of your balance amount as penalty to bank.

Form changes as per PPF Scheme 2019

  • Form A changed to Form 1 (account opening form)
  • Form C changed to Form 2 (partial withdrawls) and Form 3 (account closure after maturity)
  • Form D to Form 2 (PPF loan)
  • Form H to Form 4 (extension form)
  • New Form 5 introduced for pre-mature closure
  • Form E to Form 1 (nomination).

FAQs

How is interest on PPF calculated?

The interest on PPF is calculated on a monthly basis 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 the Form 2 with complete details along with mentioning 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 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, they only provide the related banking facility. The current interest rate on PPF is 7.90%, effective from 02 January 2020.

Is PPF interest the same in all banks?

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

Difference between PPF account and employee provident fund account (EPF)

EPF is a special mandatory savings scheme only for salaried employees working in government and private sector subject to certain thresholds. Current EPF interest rates for FY 2019-20 are 8.50% which was 8.65% earlier. Non salaried individuals such as businessmen, self employed professionals are not covered under EPF. The EPF scheme may be run by the respective employer through its own trust or by way of depositing the contributions with EPFO, a government run body that manages EPF money. A salaried person who is covered under EPF is eligible to also open a PPF account.


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