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.

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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.

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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.
  1. 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.
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  1. 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.
  1. 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%.
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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.
YearCurrent year Fresh Deposit (Rs)Current Balance including Fresh Deposit (Rs)Interest RateBalance at the end of year including Interest Amount (Rs)
1010,0007.10%10,710
210,00020,7107.10%22,180
310,00032,1807.10%34,465
410,00044,4657.10%47,622
510,00057,6227.10%61,713
610,00071,7137.10%76,805
710,00086,8057.10%92,968
810,000102,9687.10%110,279
910,000120,2797.10%128,819
1010,000138,8197.10%148,675
1110,000158,6757.10%169,941
1210,000179,9417.10%192,717
1310,000202,7177.10%217,110
1410,000227,1107.10%243,234
1510,000253,2347.10%271,214
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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.

  1. 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.
Years Loan on PPF between 3rd-6th year (in Rs.)Partial Withdrawal of PPF after 6th Year (taken from the 4th preceding year in Rs.)
100
200
32,6780
45,5450
58,6160
611,9060
7017,233
8023,811
9030,857
10038,403
11046,484
12055,140
13064,410
14074,338
15084,971
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  1. 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.
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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.

QuarterRate of InterestDifference in Interest Rate as compared to the last quarter
1st April, 2020 – 30th June, 2020 (present)7.10%-0.8%
1st January, 2020 – 31st March, 20207.90%
1st October, 2019 – 31st December, 20197.90%
1st July, 2019 – 30th September, 20197.90%-0.1%
1st April, 2019 – 30th June, 20198.00%
1st January, 2019 – 31st March, 20198.00%
1st October, 2018 – 31st December, 20188.00%0.4%
1st July, 2018 – 30th September, 20187.60%
1st April, 2018 – 30th June, 20187.60%
1st January, 2018 – 31st March, 20187.60%-0.2%
01st October 2017 – 26th December 20177.80%
01st July 2017 – 30th September 20177.80%-0.1%
01st April 2017 – 30th June 20177.90%-0.1%
01st January 2017 – 31st March 20178.00%
01st October 2016 – 31st December 20168.00%-0.1%
01st July 2016 – 30th September 20168.10%
01st April 2016 – 30th June 20168.10%-0.6%
01st April 2015 – 31st Mar 20168.70%
01st April 2014 – 31st Mar 20158.70%
01st Apr 2013 – 31st Mar 20148.70%-0.1%
01st Apr 2012 – 31st Mar 20138.80%0.2%
01st Dec 2011 – 31st Dec 20128.60%0.6%
01st Mar 2003 – 30th Nov 20118.00%-1%
01st Mar 2002 – 28th Feb 20039.00%-0.5%
01st Mar 2001 – 28th Feb 20029.50%-1.5%
15th Jan 2000 – 28th Feb 200111.00%-1%
01st Apr 1986 – 14th Jan 200012.00%
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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.
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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.
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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.
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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.
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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.
  1. 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.
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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.

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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.
YearFresh Deposit Amount of Present Year (Rs)Total Balance with Fresh Deposit (Rs)Rate of InterestTotal Balance with Interest at the end of year (Rs)
2011-12010,0008.60%10,860
2012-1310,00020,8608.60%22,654
2013-1410,00032,6548.60%35,462
2014-1510,00045,4628.60%49,372
2015-1610,00059,3728.60%64,478
2016-1710,00074,4788.60%80,883

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.

Partial Withdrawal Amount in 2018-2019 50% of (a) or (b) Amount (in Rs)
(a) Preceding year from 2018: 2016-201740,441
(b) 4th Preceding year from 2018: 2013-201417,731

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.

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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.
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YearCurrent year Fresh Deposit (Rs)Current Balance including Fresh Deposit (Rs)Lowered Interest RateBalance at the end of year including Interest Amount (Rs)
2011-12010,0007.60%10,760
2012-1310,00020,7607.60%22,338
2013-1410,00032,3387.60%34,795
2014-1510,00044,7957.60%48,200
2015-1610,00058,2007.60%62,623
2016-1710,00072,6237.60%78,142

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.
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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.
ppf-form-c-part-one
Form C – Declaration Segment
  1. 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.
ppf-form-c-part-two
Form C – Office Use
  1. 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-form-c-part-three
Form C – Bank Details
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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.

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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-form-d
Form D
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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
  1. 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
  2. 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
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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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CriterionPublic Provident FundSukanya Samriddhi Yojana
PurposeOffer flexible savings plans to safeguard funds for one’s retirement, child’s education plans or marriage etc.Dedicated towards protecting the future of a girl child.
EligibilityAny Indian Resident can open a PPF Account for themselves or by representing a minor.An adult or guardian individual can register for SSY for their girl child.
Maximum Account RegistrationAn individual can have only one PPF scheme under their name.  Only one SSY Account can be opened for one girl child and two SSY can be acquired in one family and a third account in case of girl twins.
Minimum DepositThe minimum deposit amount to be deposited annually under PPF is Rs. 500.Sukanya Samriddhi Yojana provides a start deposit limit of Rs. 250 annually.
Maximum DepositThe annual maximum deposit for a PPF Account is Rs. 1.5 Lakh.1.5 Lakh is the maximum deposit of amount annually under SSY.
Criteria of AgeAny adult can open a PPF account for themselves or for a minor.An adult can open a SSY Account representing a girl child up to the age of 10 years.
Interest RateThe current ROI is 7.1% as per April, 2020.The present ROI is 7.6% w.e.f. April 2020.
Lock-in PeriodReturns can be acquired only after successful completion of 15 years of the scheme.SSY has a lock-in period of 21 years or the principal amount can be obtained during the marriage of the girl only after she reaches 18 years of age.
Premature Withdrawal or closure of accountCan be made only after 5 years of the plan’s tenure under specified circumstances like for treatment of a critical illness, death of the holder or for educational purposes.The amount from SSY Account can be drawn before maturity in case of death of the girl child, for the treatment of a severe disease or higher studies.
Partial WithdrawalPartial withdrawal can be drawn only after completion of 6 years of the scheme of up to 50% of the amount from preceding yearCan be made for a girl child who has reached at least 18 years of age. Up to 50% of the amount collected in the previous year from the year where the partial withdrawal is desired
RegistrationA PPF Account can be opened at any post office, Public Banks and participating private banks across India.A SSY Account can also be registered for at any post-office, Public Banks and any private banks that offer the service of SSY.
Online Account openingIt is possible to open a PPF Account online for the existing customers of the concerned banks.Online facility for opening a SSY Account is not yet available.
Nomination FacilityYes, it is permitted under PPF Scheme to opt for a nominee.No, SSY Scheme does not allow nomination.
Form of DepositThrough cheque, demand draft, cash or by making an online transfer.Cheque, demand draft and cash are three modes for payment of deposit.
Account TransferTransfer from a post office to bank of the PPF account or from a bank to post office is permitted.It is possible to transfer SSY Account from bank to post office or from post office to a bank.


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PPF Calculator FAQs

What happens if a PPF Account holder dies?

If an unfortunate death of a PPF Account Holder takes place before the maturity of the plan, the collected amount till date can be claimed by the nominees of PPF by filling up the Form-G application. However, in case if the account holder had not elected a nominee, his/her legal heirs can also come forward to draw the claim by filling up the Form-G application by providing a letter of administration, succession certificate etc.

What happens if you deposit more than 1.5 Lakh in PPF?

PPF allows maximum deposit amount of Rs. 1.5 Lakh per financial year. Considering the given condition, in case an individual tries to deposit more than Rs. 1.5 Lakh exceeding the limit provided under PPF, the transaction on the first hand will not be processed and get rejected. On the other hand, even if a candidate manages to deposit the amount exceeding the limit, the supplement amount will not be subjected to earn any interest under the plan.

Can I withdraw PPF after 5 years?

This circumstance would be called as the premature withdrawal of the invested amount. An individual is permitted to make a premature drawing only after passing 5 years of the plan’s period. However, premature withdrawal is allowed under only certain specified situations like death of the holder, for treating critical illness of the PPF owner or his closely related family member or for expensing on higher education. A premature withdrawal charges a penalty of 1% lowered interest rate and directly results in termination of the PPF.

Is NPS better than PPF?

Formulated by the Government of India, both NPS and PPF have a few distinguishable features amongst them. A National Pension System is a plan originated to generate savings for retirement by an individual.
On the other hand, a PPF provides multi-purpose options as it can be used in various places more than retirement. While both the plans are designed to be long-term, NPS imposes a lock-in period till 60 years of age whereas a PPF offers a minimum lock-in time of 15 years. The ROI offered under NPS is comparatively higher than PPF due to its long-holding period.
NPS and PPF both provide tax-exemption up to Rs. 1.5 Lakh to its investors. The minimum amount of investment under NPS is Rs. 6000 whereas for PPF it is Rs. 500 ranging up to 1.5 Lakh. Premature Withdrawal under PPF can be made after completion of 6 years of its tenure up to 50% whereas, NPS allows premature withdrawal after three years of account opening of up to 25% of the accumulated amount.
Therefore, considering the above points, the choice between NPS and PPF is entirely dependent on the requirements and financial plans of the individual.

Which bank gives a higher PPF Interest Rate?

All banks that participate in offering Public Provident Fund schemes in the market, whether major Public or Private banks uphold the similar and fixed rate of interest as decided by the government of India. The government revises the interest rate of PPF at the start of every quarter. The current rate of interest for the first quarter of this financial year is 7.1% as of April, 2020.

Which is better, PPF or FD?

PPF and Fixed Deposit both rank amongst the topmost acquired investment policies across India. Both of the schemes provide a tax exemption of up to Rs. 1.5 Lakh to its investors. However, the interest rate in a PPF Scheme is determined by the government of India and remains the same across all banks whereas the ROI of an FD is slightly higher than PPF and is decided individually by banks, varying amongst different banks.
The lock-in period of an FD ranges from 7 days to 10 years which is ideal for making a short-term investment whereas the minimum time period of lock-in for a PPF is that of 15 years. However, PPF is comparatively lower in risk than FD as it is authorized under the Central Government.
Both the plans offer its investors with the facility to opt for a premature withdrawal by implying a penalty charge on it. Although, PPF permits premature withdrawal only after completion of 5 years. PPF and FD both provide loan facilities.
PPF provides loan opportunity from the 3rd year of its tenure and sanctions up to 50% of the accumulated amount in the preceding financial year than the year where the loan is required to be drawn while FD offers up to 90% of the amount invested in the Fixed Deposit.
Lastly, unlike PPF, which imposes a maximum deposit limit of Rs. 1.5 Lakh per financial year, FDs do not uphold any such kinds of limits. Therefore, keeping the above points in consideration, the suitability of PPF or FD entirely depends on the requirements and desires of the candidate.

Is LIC better than PPF?

Life Insurance Corporation (LIC) and Public Provident Fund (PPF) are two secure but different aspects of investment. LIC is meant to provide insurance for the life of an individual whereas PPF is formulated with the goal of generating savings.
An LIC is beneficial in situations where a person wishes to safeguard their family’s financial future in case of an untimely death of the holder. However, if the concerned individual survives till the maturity period, the return amount can be used as savings or retirement fund.
Whereas, a PPF scheme is acquired by an individual for collecting funds to secure their retirement period or for the purpose of accumulating funds for marriage or higher education of their children. LIC and PPF both provide tax-benefits to its investors along with services like loan facilities.

What is the minimum lock-in period for PPF Account?

PPF imposes a minimum lock-in period of 15 years under its scheme. This simply means that an investor is not allowed to take out the amount before reaching its maturity period of 15 years. Although, a premature withdrawal can be drawn after completion of 5 years of the plan in case of death of the account holder, for treating a severe disease or for funding higher education.
PPF also provides the service of making partial withdrawal after completing 6 years of the plan. This allows an account holder to draw 50% of the total sum accumulated in the previous financial year right before the year when the loan is desired to be taken.

Can a person have 2 PPF Accounts?

No, it is not permitted for one individual to acquire two PPF accounts. Basically, only one PPF scheme can be obtained under one individual’s name. However, an individual is allowed to open a PPF account in the name of a minor below the age of 18 years. A declaration is also required to be made by the concerned candidate that he/she does not have any other PPF account while signing-up for a new account.

Which is the best bank to open a PPF Account?

The key benefit of the PPF is its vast-scale availability. PPF is available at all post-offices across the country and well renowned Public Banks as well as participatory Private Sector Banks.
An interested candidate can distinguish amongst different banks on the basis of their customer service, online facility of opening or maintaining the account, quick fund transfer methods etc.
Given below is the list of banks which provide the facility to avail a PPF Scheme –
Allahabad Bank, ICICI Bank, Axis Bank, IDBI Bank, Bank of Baroda, Indian Bank, Bank of India, Indian Overseas Bank, Bank of Maharashtra, Oriental Bank of Commerce, Canara Bank, Punjab National Bank, Central Bank of India, State Bank of India, Corporation Bank, Syndicate Bank, Dena Bank, Union Bank of India, HDFC Bank, United Bank of India, Vijaya Bank.
 

How can I check my PPF Balance?

Nowadays, it has become extremely simple and convenient to check the PPF Balance of your account as many banks have started providing this online facility. However, it is possible to check the PPF Balance both, online and offline.
Steps to check PPF Balance Online –
1. Firstly, make sure that your bank provides this facility and that you have NetBanking active on your account.
2. Login into the official website of your concerned bank and head towards “PPF Account Balance”.
Steps to check PPF Balance Offline –
1. A passbook is provided by the bank during the allotment of the PPF account which contains details such as account number, total balance, credit and debit details etc.
2. Visit your respective branch and simply get the passbook updated to see the present details of your account including the PPF Balance.

Is PPF Interest the same in all banks?

Yes, as the rate of interest of Public Provident Fund Scheme is determined by the government of India, it remains the same for banks. The government revises the interest rate of PPF every quarter and the current rate of interest as per April, 2020 is 7.1%.

What is the Interest Rate for PPF in SBI?

As per the first quarter of this financial year, SBI is providing 7.1% interest on a PPF Scheme. SBI Interest Rate of PPF is regularly reviewed and formulated by the Indian Government. Along with that, SBI offers a deposit limit on PPF of up to Rs. 1.5 Lakh in one financial year along with providing tax-benefits to its investors.

Can we close the PPF Account after 5 years?

Yes, it is permitted to terminate or initiate the closure of a PPF Account after 5 years but only under certain specified circumstances. A premature withdrawal also results in the closure of the account.
The Government of India has kept flexible closure rules under given situations like that of death of the account holder, for treatment of a critical disease affecting the holder themself or for their closely related family members involving children, spouse etc.
A premature withdrawal can also be made after 5 years for the purpose of funding requirements for higher education of the minor.

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