PPF Calculator – What is PPF Interest Rate & How to Open PPF Account

Classifying as one of the most extensively efficient long-term investment schemes that are obtainable in the market across India, PPF offers binary benefits by providing an opportunity to its investors of availing tax exemption, as well as to earn guaranteed and profitable returns over their financed savings.

PPF full form stands for Public Provident Fund. PPF scheme is a substantial choice for any individual aiming towards planning funds for their child’s education, marriage or for their own retirement life.

Formulated in 1968 by the National Savings Institute of the Ministry of Finance, Public Provident Fund are low-born on risk as they are authorized by the Indian Government, also allowing facilities like loan acquisition and investment flexibility starting from a minimum of Rs. 500 up to 1.5 Lakh annually.

Continue reading to learn about various significant attributes of Public Provident Fund along with its current interest rates, PPF Calculator and so on.

PPF Calculator

While brainstorming about purchasing a Public Provident Fund Scheme, it is essential to determine the sum amount you desire to invest in the same and also identify the return benefits it will offer you as per the concerned interest rates.

Along with that, while financing in PPF, one should also keep in consideration their monetary comfortability and that PPF also offers valuable tax-benefits of up to Rs. 1.5 Lakh annually under Indian Income Tax Act 1961, Section 80C.

Therefore, the Online PPF Calculator tool has been created to rationalize and simplify the otherwise complex process of evaluating the principal amount with its interest sum in just a click of a button.

PPF Return Calculator – Steps

It is just effortless to use a PPF Calculator as it demands just the following basic details to calculate the maturity amount of a Public Provident Fund.

1. Amount of Deposit
   The predetermined amount under Public Provident Fund Scheme, which is required to be deposited as per the chosen duration of installment determined while making the purchase of the plan is called as the amount of deposit.
   However, the deposit amount can range from Rs. 500 to Rs. 1.5 Lakh for one financial year. For instance, if the chosen duration is quarterly and the deposit amount is Rs. 10,000, the sum amount of the PPF would accumulate to be Rs. 40,000 by the end of the year.

2. Installment Duration
   The duration of installment simply means the period of time chosen for payment of the investment amount. PPF Calculator yearly, half-yearly, quarterly and monthly options are available on the tool and can be chosen as per your PPF scheme and preference.

3. Tenure
   The lowest lock-in period under Public Provident Fund is that of 15 years. Although, this period can be extended further to a stretch but only in multiples of five called as a block. This should be done within one year of the PPF maturity. Hence, there are choices given in PPF calculator for 20 years, 25 years, 30 years and so on, apart from the base duration, i.e., 15 years.

4. Rate of Interest
   In the PPF Calculator, the interest rate is the percentage which decides the sum of earnings an individual will acquire on the invested amount in PPF during the time of its maturity.
   The interest is compounded annually and the current rate of interest offered by the government as per the first financial quarter, April 2020 is 7.1%.

PPF Account Calculator – Working

The PPF Calculator functions to provide accurate results of maturity amount and sum interest evaluated based on the desired investment and tenure. The PPF Calculator works on the following formula –

A = P [({(1+i) ^n}-1)/i]

Where,

A – Maturity amount
P – Principal amount invested
i – interest rate
n – number of total years

1. For instance, let’s assume that an individual has acquired a PPF scheme for 15 years with a plan to deposit annual installments of Rs. 10,000 till the end of its tenure on an interest rate of 7.1% (existing interest rate as per April,2020).
   Following is how the PPF monthly calculator will process its return amount of maturity of the Public Provident Fund.

Hence, the total returns attained by that individual will be Rs. 3,254,569 on the maturity as shown in the PPF Calculator at the end of 15 years.

2. Now let’s evaluate the loan value (which can be taken between the 3rd to 6th financial year) and partial withdrawal value (which can be drawn after completing 6 financial years of the plan) from the lower amount of the given two conditions: (a) withdrawal up to 50% of the total amount collected by the end of preceding year from the year in which you wish to make a partial withdrawal. (b) Up to 50% of the total amount at the end of 4th financial year preceding from the year in which you wish to make a partial withdrawal.
   
   To calculate the above mentioned values, we will use the PPF withdrawal calculator to evaluate for the same individual depositing Rs. 10,000 annually for a period of 15 years in a PPF Calculator.

3. For better comprehension of the above calculation, let’s assimilate each aspect of the table.
   
   1. Opening Balance
      The total balance in the PPF Account at the start of a financial year is called the opening balance.
      
   2. Closing Balance
      The total balance at the end of a financial year, including the supplement deposits made in that year as well as the earned interest till date is called the closing balance.
      
   3. Deposits
      Deposits is the total amount of additional installment money paid throughout one financial year.
      
   4. Acquired Interest
      Compounded on an annual basis, acquired interest is evaluated using the account balance at the end of a financial year.
      
   5. Loan against PPF
      The above given table mentions the maximum loan amount assuming that no loan has been drawn in the past. Public Provident Fund offers the service of loan to its investors which can be acquired between 3rd to 6th year of the account’s existence.
      
   6. Withdrawal
      PPF allows its investors to make partial withdrawals 7th year onwards of the scheme’s duration. The total amount which can be withdrawn is the lower of both – 50% of the account balance at the end of preceding year to the concerned year or 50% of the total balance at the end of the 4th year preceding the withdrawal year.

PPF Interest Rate 2020

Endorsed and validated under the Indian Government, the Public Provident Fund or PPF account offers a comparably higher percentage of interest than various other plans presented by banks all across the country.
PPF rate of interest is revised every quarter by the central government and the current interest rate for the first quarter for this financial year, with effect from April 2020 is 7.1%.

Given below is a table which enlists the various revised interest rates of Public Provident Fund since its commencement in 1968.

The Indian Government renders service of the Public Provident Fund scheme through post offices, public and private sector banks. These banks offer PPF facilities to its customers and non-customers for both minors and adults. ICICI, HDFC, Axis bank, SBI PPF Interest rate and that of all other banks remain to be 7.1% w.e.f. 1st April, 2020.

PPF Calculator Online – Advantages

The online tool facility of a Public Provident Fund Calculator extends multiple benefits for its users to seek assistance from. Some of the major points of PPF Investment Calculator are –

1. This tool helps in identifying the amount of tax exemption that can be availed under Public Provident Fund.
2. As per one’s needs and financial comfortability, PPF Calculator India assists is determining the right amount for deposit installments along with the time period an individual wants to invest for.
3. The exact amount of interest can be evaluated using the PPF Interest Rate Calculator.

PPF Interest Rate Calculator

PPF Interest Rate Calculator is a free to use online tool presented by various public and private banks which offer the service of Public Provident Fund on their respective websites. Given below are details about some of the banks which provide PPF schemes along with the facilities they offer related to it.

PPF Calculator SBI

SBI is one of the largest and renowned public sector banking services that are available in India. Ranking amongst the topmost leading banks, SBI has a huge geographical spread with more than 20,000 branches all across India. Following are some of the features of obtaining PPF in SBI –

1. SBI PPF Account can be easily opened by visiting an SBI branch or in case if you are already linked with SBI PPF can be obtained within minutes online via their digital services, without any hassle.
   
2. PPF Rate in SBI is currently 7.1% as per April, 2020 which is revised by the government every quarter.
   
3. SBI has been amongst the first few banks to launch PPF Calculator India. SBI PPF Calculator is an efficient instrument which can be found out on their official website.
   
4. PPF Calculator SBI simply requires the basic details of your Public Provident Fund like the total amount invested, its interest rate and the tenure period to accurately calculate the returns.
   
5. Transferring an SBI PPF Account to any other bank or post office is possible and is a free of charge service.

PPF Calculator HDFC

HDFC owns the largest market capitalisation in India as of 2020. Offering a plethora of products and services in the market, HDFC also provides the service of opening a Public Provident Fund Account. Following are the features extended by HDFC Bank –

1. HDFC allows its existing customers with a 24×7 service to open PPF Account online, within the comfort of their own home.
   
2. PPF Calculator HDFC also permits the extension of the PPF tenure by simply making an increase of blocks, where one block represents 5 years.
   
3. HDFC PPF Calculator is also available online for its customers to determine the interest returns as per their investment amount.
   
4. HDFC PPF Account Calculator generates an extended table under the calculator which shows opening balance, closing balance and interest earned for every year. This feature makes it a lot more convenient for an individual to easily understand the evaluation.
   
5. HDFC interest rate of PPF is tax-free and regularly reviewed by the government which currently is 7.1% w.e.f. April 2020.

ICICI PPF Calculator

Industrial Credit and Investment Corporation of India (ICICI), is a multinational company for banking and finance which is well-known for its customer support and as one of the most trustworthy and reliable banks. ICICI Bank also provides PPF services, some of the attributes of which are as follows –

1. As per ICICI PPF Calculator, ICICI Bank permits the action of making a partial withdrawal from the accumulated PPF amount after completion of 5 years of the PPF Scheme.
   
2. It also provides a feature to its customers to review the statement of their PPF Account Online.
   
3. PPF Calculator ICICI Bank is a free online tool offered by the bank through which an individual can plan the amount they want to invest as per the rate of interest and their financial comfortability.
   
4. The bank also allows deposit funds in PPF Account directly from the connected savings account.
   
5. As declared by Indian Ministry of Finance, the current interest rate offered by ICICI PPF Account is 7.1% as per April, 2020.
   
6. Apart from the above mentioned banks, there are various other banks which offer PPF calculators like PNB PPF Calculator, Axis Bank PPF Calculator and a lot more, offering their users with an efficient and effortless experience.

PPF Account Online – Steps to open

Some banks like HDFC, ICICI, SBI etc allow to open a Public Provident Fund Account simply by visiting their official website online. It is a hassle-free process which allows access to PPF within the comfort of your home.

1. Before learning about the procedure, it is important to keep the given points in consideration –
   
   1. It is necessary to be a savings account holder with the concerned bank.
   2. NetBanking should be active on your account and your Aadhaar Card must be linked to it.
   3. It is mandatory to have the Aadhaar Card linked with the registered mobile number.

2. Below is the step-by-step procedure for opening a PPF account online –
   
   1. Step 1: Find out and visit the official website of your bank.
      
   2. Step 2: After that, login to NetBanking.
      
   3. Step 3: Locate the option to open a new PPF Account.
      
   4. Step 4: You might have to make a suitable choice between an adult or minor account.
      
   5. Step 5: Henceforth, you will be directed towards the online form wherein you will be required to enter your bank details, nominee’s information, PAN Card, and lastly, the amount you wish to invest in the PPF.
      
   6. Step 6: You will be asked to enter the OTP which will be received on your registered mobile number to complete the registration process.
      
   7. Step 7: Lastly, it is advisable to note the displayed account number for future reference or else, in some banks, you will have to visit the bank with the print out of your reference number along with the Know Your Customer (KYC) details.

How to Open PPF Account – Offline Process

It is a convenient process to get a Public Provident Fund Account offline. An individual just needs to visit the nearest post office or a bank branch offering services for the same, along with their KYC documents.

Following is the step-by-step guideline which should be followed for opening a PPF Account-

1. Step 1: Collect the application form from the nearest post-office or bank branch and fill it with relevant details.
   
2. Step 2: Submit the form with the following necessary documents.
   
   1. Identity Proof – PAN card, Aadhaar Card, Voter ID, Passport etc.
   2. Address Proof – Aadhaar Card, telephone or electricity bill etc.
   3. Passport size photographs.
   4. Birth certificate in case if the PPF is going to be issued for a minor.
      
3. Step 3: A lump-sum deposit is mandatory to be paid during the time of allotment of the PPF. The amount of deposit ranges from a minimum of Rs. 500 up to Rs. 1.5 Lakh for one financial year. The installments of deposits are needed to be paid as per chosen duration.
   
4. Step 4: You will be provided a passbook containing details such as the account holder’s name, branch and account number after the successful completion of the registration process.

PPF Withdrawal Rules – 3 Ways

Especially renowned as a great long-term investment plan, Public Provident Fund comes with a lock-in period of minimum 15 years. This means that the investor can make a PPF Withdrawal out of the accumulated principal amount earned only after this period’s completion.

However, following are some circumstances under which withdrawal can be initiated before fulfillment of the tenure along with the guidelines which are advisable to be kept in consideration while planning to make a drawing from the scheme.

PPF Withdrawal can happen in 3 ways:

1. PPF Withdrawal Rules for Partial Amount

Under some situations, PPF grants the permission for withdrawal of the invested amount up to 50% of the collected sum till date after successful fulfillment of 6 years of the scheme.

1. A Public Provident Fund holder can only initiate a partial withdrawal on the start of its 6th year and onwards, from the date of its commencement.
   
2. Only a single partial withdrawal can be made during one financial year, either (a) up to 50% of the accumulated amount at the end of the preceding year to the current financial year or (b) 50% of the sum as at the end of 4th financial year, preceding the current year, whichever of the both is lesser.
   
3. The withdrawal of PPF in a partial amount is also tax-free.
   
4. PPF allows extending the tenure of the scheme after reaching its maturity period of 15 years by simply offering a facility of extending the duration of it with blocks of 5 years. However, a partial withdrawal in such a case can only be made up to 60% of the principal amount accumulated at the commencement of each block’s duration.
   
   For instance, if a person acquired PPF in the financial year 2011-2012 and wanted to make a drawing in 2017-18, the following is how the amount will be calculated.

As mentioned above, Partial Withdrawal can be made in either on two conditions: (a) up to 50% of the accumulated amount at the end of the preceding year to the current financial year or (b) 50% of the sum as at the end of 4th financial year, preceding the current year, whichever of the both is lesser.

Hence, as shown above, if you started depositing Rs. 10,000 in your PPF account and want to withdraw in the year 2018, you can withdraw the lower amount which is Rs. 17,731 in this case.

2. PPF Withdrawal Rules for Premature Plan

This type of withdrawal from PPF can be made for certain specified requirements.

However, it can be drawn only after completion of 5 years from the commencement of the PPF and comes with a penalty charge. Making premature drawing results in termination of the scheme.

1. After revision of the Public Provident Fund Act in 2016, the government allows premature withdrawal of the investment for certain requirements like for treatment of a severe medical ailment of a closely related family member, for educational purpose or in case of death of the policy holder.
   
2. The demand of relatable documents is necessary to be fulfilled in order to avail the amount.
   
3. In such a step of a premature withdrawal, 1% lowered rate of interest rate is applied on the invested amount.
   
   For instance, let’s assume that an individual wishes to make a premature withdrawal for a PPF which commenced in 2011-2012. Let’s evaluate the lowered return sum for the same.

Hence, the amount which can be acquired on premature withdrawal of PPF in the year 2018-19 is Rs. 78,142.

3. PPF Withdrawal Rules for Complete Withdrawal

As mentioned above, the returns from PPF can be withdrawn only after the completion of its mandatory lock-in period, i.e. after reaching 15 years. An individual is then allowed to withdraw the entire amount invested along with the sum interest earned on it.

However, PPF also provides the facility of extending the scheme’s tenure period and reinvesting the principal amount. This extension can be only only in the blocks of 5 years.

It is significant to remember that if an individual does not withdraw its returns and close the account within the duration of 1 year from its maturity, the duration gets extended by default.

1. PPF Withdrawal after simple extension
   It is only allowed to make one withdrawal per year. An investor can withdraw the amount accumulated up till the maturity of the PPF, i.e. the sum available before commencement of the block period.
   
2. PPF Withdrawal after extension with contributions
   Extension with contributions is when an investor decides to extend his/her PPF plan with the desired block period and also add further supplement contributions to it.
   In such a case, interest is generated on contributions as well as the maturity amount outstretched as well. Following are the points an individual should be aware of while planning to make an extension with contributions –
   
   1. It is necessary to fill the Form-H a minimum one year before reaching the maturity period of the PPF.
   2. If not done so, further contributions will not be accountable for interest and would not attain tax benefit facility.
   3. In only one withdrawal per financial year, a total of 60% of the sum amount accumulated during the time of extension can be drawn out of the PPF.

Withdrawing from PPF Process

In any of the given instances of withdrawal, whether making a complete, premature or partial withdrawal, it is compulsory to fill and deposit a Form-C application with the concerned bank branch or post-office to actuate the process of withdrawal. This Form-C is divided into three sections which are as follows –

1. Declaration Segment
   This part of the form will require entry of the investor’s account number, the total amount which is desired to be drawn, duration of the PPF for which it has been in existence along with the reason for making a withdrawal. In case of a minor, a certification that he/she is alive and is still a minor will be required.

2. Office-Use Segment
   Following details are needed to be entered under this section –
   1. Date of commencement of the PPF account
   2. Sum amount collected till date
   3. Amount available in the account
   4. Total Amount available for withdrawal
   5. Approval date for previous withdrawal
   6. Sanctioned amount for withdrawal
   7. Signature and name of the branch official
      
      Note: An individual who becomes an NRI after obtaining a PPF Account can withdraw their returns after the completion of its tenure. However, NRIs are not allowed to further extend the duration of their PPF in blocks.

3. Segment for bank details
   This section involves the details of the receiving account where the amount is desired to be credited. It may also include details of the issue of cheque or Demand Draft.
   It is also mandatory to attach a copy of the passbook of your PPF Account along with the Form-C during its submission.

PPF Tax Benefits

Under Section 80C of Indian Income Tax Act, 1961, both partial and complete withdrawal reside under the benefit of availing a tax exemption.

This is because the Public Provident Fund Schemes falls under the Exempt-Exempt-Exempt (EEE) category which means that the amount deposited under PPF, interest earned over it and the final corpus availed from it will all remain tax-free.

Loan against PPF

The Public Provident Fund scheme provides its investors with a facility to avail loan against their plan. It sanctions the acquisition of loans between the 3rd to 6th financial years. The loan amount which is offered under PPF is basically 25% of the opening balance of the PPF account from the preceding financial year.

However, no loans are granted from 7th year onwards but a candidate can successfully opt to make a partial withdrawal, instead. The rate of interest payable on loan against PPF Accounts is 2% higher than the existing interest rate of the PPF Account.

Although, if the interest rate at 6% more than the prevailing rate is charged if the loan amount is not repaid within 3 years of availing the loan and it is not possible to take a second loan without paying the dues from the first loan.

Form D is required to be filled and submitted to successfully apply for loan against PPF which requires the following details –

1. Account Number
2. Desired loan amount
3. Undertaking of repayment within 36 months
4. Past loan amount (if any)
5. Certification of proof

PPF Account Holder Death

The accumulated amount can be claimed by the authorized nominee or legal heirs of the account holder of the PPF Account before reaching 15 years of its tenure during an unfortunate circumstance of death of the investor.

A Form G is required to be submitted in this situation, which requires the following details-

1. Instance 1: If a nominee is elected
   1. Death Certificate of the holder
   2. Form G deposit by each nominee
   3. Passbook of the PPF Account

2. Instance 2: If nominee is not elected
   1. Death Certificate of the holder
   2. Form G deposit by legal heirs
   3. Passbook of the PPF Account
   4. Letter of Administration, Succession Certificate or copy of the will is required
      
3. Instance 3: If the claim amount is lower than Rs. 1 Lakh and a nominee is not elected
   1. Death Certificate of the holder
   2. Form G deposit by legal heirs
   3. Letter of Indemnity – Annexure I to Form G on stamped paper
   4. Affidavit – Annexure II to Form G on stamped paper
   5. Letter of Disclaimer on Affidavit – Annexure III to Form G on stamped paper

PPF vs. Sukanya Samriddhi Account Calculator

Introduced and authorized by the Indian Government, Public Provident Fund and Sukanya Samriddhi Yojana schemes are both long-term types of low-risk and value investment plans.

PPF and SSY plans both fall under the Exempt-Exempt-Exempt (EEE) category which means that the amount invested, interest earned and the maturity sum are all free from tax implication.

Along with that, both the schemes offer opportunity of availing annual tax exemption of up to Rs. 1.5 Lakh under the Section 80C of Indian Income Tax Act, 1961.

However, there are few distinguishable points between PPF and SSY Accounts. Let’s apprehend these with the help of a table.

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PPF Calculator FAQs