Public Provident Fund (PPF) is a long-term investment scheme offering guaranteed returns. Introduced in 1968 by the National Savings Institute under the Ministry of Finance, it allows investors to build a large corpus over time, primarily for retirement. For those looking to invest in a post office PPF scheme, the post office PPF calculator is an invaluable tool for estimating returns on investments.
Key Features of Post Office PPF Scheme
- Interest Rate: The current post office PPF interest rate is 7.1% per annum, revised quarterly by the government.
- Guaranteed Returns: The interest rate remains fixed throughout the investment period, ensuring stable returns.
- Loan Facility: Investments can be used as security to avail loans.
- Lock-In Period: Minimum lock-in period is 15 years, extendable by 5 more years after maturity.
- Partial Withdrawal: Allowed after 7 years, subject to conditions.
- Tax Benefits: Falls under the Exempt-Exempt-Exempt (EEE) category, providing tax exemptions under Section 80C of the Income Tax Act.
How to Calculate Post Office PPF Returns?
Post office PPF returns can be calculated using the following formula:
M = P [({(1+ i) ^ n} – 1) / i]
Where,
- M = Total maturity value by the end of the investment period
- P = Amount of money contributed annual in the PPF account
- i = PPF interest rate in post office
- n = Total number of years until maturity
Example Calculation:
- Annual Investment: Rs 1,00,000
- Interest Rate: 7.1%
- Investment Period: 15 years
Results:
- Total Invested Amount: Rs 15,00,000
- Total Earned Interest: Rs 12,12,139
- Total Maturity Value: Rs 27,12,139
Step-by-Step Guide to Using INDmoney PPF Calculator
Using the INDmoney post office PPF calculator is simple:
1. Open INDmoney Calculator: Access the calculator on your smartphone or computer.
2. Enter Details: Input your yearly investment and the investment period.
3. Calculate: The calculator will display the total invested amount, total interest earned, and maturity value instantly.
Benefits of Using INDmoney’s PPF Calculator
- Accurate Calculations: The calculator uses the PPF return calculation formula, providing precise results.
- Time-Saving: Quickly displays relevant return figures, saving time and effort.
- Fixed Interest Rate: Automatically uses the fixed PPF interest rate, simplifying the input process.
- Investment Planning: Helps plan yearly investment amounts according to financial goals.
Frequently Asked Questions
What is a post office PPF calculator?
A post office PPF calculator is an online tool that helps estimate the returns on your PPF investments by inputting the investment amount and tenure.
How does the post office PPF calculator work?
It calculates the maturity value, total invested amount, and interest earned based on the current PPF interest rate and the investment period.
Why should I use a post office PPF calculator?
It saves time, ensures accurate results, and helps you plan your investments effectively by providing a clear picture of potential returns.
Can I compare different PPF plans using the calculator?
Yes, by changing the input values, you can compare different investment amounts and durations to see how they impact your returns.
Is the post office PPF calculator free to use?
Yes, most online PPF calculators, including the INDmoney PPF calculator, are free to use.
How often should I use the PPF calculator?
Use the PPF calculator whenever you plan to invest or adjust your investment strategy to ensure you are on track with your financial goals.