What is PPF Calculator?
The PPF calculator is a tool that helps you calculate the maturity value of the funds that lie in your Public Provident Fund (PPF) account. The Government of India has extended the benefit of PPF a long-term savings scheme, that allows individuals to save money and earn interest on it. The interest rate on PPF is set by the Ministry of Finance on a quarterly basis and is subject to change.
HDFC Bank’s PPF calculator takes into account the deposit amount, number of deposits that you make in a year along with prevailing interest rate and the number of years for which the money is invested to help you calculate value of your investment at maturity. HDFC Bank’s PPF calculator also calculates the potential interest earned over the time period invested and gives you an indicator of where you could be, should you choose to start investing today.
The HDFC Bank PPF calculator negates the need to carry out complex manual calculations, and allows you to get the answers you need in just a matter of seconds. It also serves as a tool to help you plan investments and finances intelligently, so that you are able to make informed decisions about the future.
The ability to adjust the amount, number of installments and calculate PPF online on tapping a screen or pushing a button means that you can explore various permutations and combinations till you find something that works for you.
*The amount mentioned in the calculator is an indicative figure .
What is the maturity period for PPF?
The lock-in period for a PPF Account is 15 years from the date of opening. However, you can extend this tenure by five years by submitting an application. You can extend your PPF by a block of 5 years several times. With HDFC Bank’s PPF Calculator, you can check your projected maturity value multiple times to help you plan ahead. Setting a financial goal with our PPF Account Calculator will also allow you to have a clear plan in mind about how much you need to invest every year.
When can I withdraw the amount from my PPF Account?
You can withdraw the entire PPF balance after the lock-in period of 15 years expires. Additionally, you can opt for partial withdrawal prior to the expiration of the maturity period. This feature only becomes available from the 7th financial year for emergency purposes. Even this amount can be accounted for in advance with our PPF calculator, as it allows you to identify your return at maturity.
How is PPF Calculated?
PPF interest is computed on the lowest balance amount in the account between the 5th and last day of the month. Interest is paid to the account at the end of every financial year, regardless of where the account stands. Thus, although PPF interest is calculated on a monthly basis, it is credited to your account on a yearly basis. Our PPF Account Calculator can also be used as a PPF Interest Calculator to estimate the returns you would earn at maturity.
What is the current interest rate on PPF?
The PPF Account interest rate is set by the Ministry of Finance on a quarterly basis. As far as the current PPF interest rate is concerned, for the quarter ending in June 2022, it has been fixed at 7.1% per annum.
How to use a PPF Calculator?
Using a PPF Calculator is simple. You simply have to plug in the details regarding your PPF investment as required.
The HDFC Bank PPF Calculator requires you to input details like the number of deposits every year and the amount deposited. Once you provide this information, the calculator will show you the total maturity amount and the interest earned almost instantly. Quick and convenient, the PPF Calculator provided by HDFC Bank makes conducting your PPF calculations so easy!
How can a PPF Calculator help me?
Using a PPF Calculator can be very useful. Firstly, it helps you save the time manual calculations would have taken you. It is also easily accessible online, and you can use it for free. A PPF Calculator also helps you plan ahead by showing you the maturity value of your investment as per your financial goals and needs in the future.
Certain PPF Calculators, like the one offered by HDFC Bank, provide a breakup of your initial investment and interest earned. This breakup helps you see how your investment has paid off.
What are the tax benefits of PPF?
PPFs have also become a preferential investment option for many because of the tax benefits they provide. PPFs fall within the EEE (exempt-exempt-exempt) category. Thus, with PPFs, you get triple tax exemptions under the Income Tax Act 1961.
You can enjoy tax exemptions at the time of investing, accrual and withdrawal. Under Section 80C of the Act, you can avail a deduction of up to INR 1.5 lakh in each financial year on a PPF. Plus, the interest you earn every year is also tax-exempt. Lastly, the corpus that you withdraw upon maturity is also exempt from tax.