Public Provident Fund or PPF is an old yet still popular investment vehicle that offers guaranteed returns on investment. It is primarily a long term investment scheme that allows investors to build a large corpus in the long run, mostly when they reach retirement age. Introduced in 1968 by the National Saving Institute of the Ministry of Finance, PPF offers investors a great opportunity to grow their money and retire conveniently with a healthy corpus. If you are looking forward to investing in a post office PPF scheme, you can use a post office PPF calculator and estimate returns from your investment. Let us know what PPF is and how you can use a PPF calculator post office for your advantage.

## Post Office PPF: An Overview

An old-school retirement scheme, post office PPF is still a very cherished retirement savings plan. By contributing a certain amount of money periodically, you can build up a substantially large corpus by the time of maturity. The reason behind the popularity of post office PPF is its features. Let us learn some of the key features of the post office PPF scheme.

- The current post office PPF interest rate is 7.1% annually.
- The interest rate is revised every quarter by the government. However, the PPF account holder continues to earn interest on the rate at which his/her PPF account was opened.
- The interest rate in post office PPF remains the same throughout the investment period, thus offering guaranteed returns to the investors.
- Investments made in the post office PPF account can also be used as a security to avail loans.
- The minimum lock-in period in the post office PPF account is 15 years, which can be extended further to 5 more years after completion of the initial maturity.
- Investors are allowed to make a partial withdrawal from their post office PPF account after the completion of 7 years, subject to certain conditions.
- PPF falls under the Exempt-Exempt-Exempt (EEE) category, which means both the investments and returns generated are exempted from taxation under Section 80C of the Income Tax Act.

The benefits that come along with the post office PPF scheme are certainly lucrative. If you want to plan investing in a post office PPF, you should probably know how to calculate the returns beforehand.

## 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

Let us understand this with an example. Suppose you opened a post office PPF account in which you wish to invest Rs 1,00,000 annually for 15 years. Taking the existing interest rate of 7.1% into consideration, we will get the following results

- Total invested amount: Rs 15,00,000
- Total earned interest: Rs 12,12,139
- Total maturity value: Rs 27,12,139

The interest rate of 7.1% on the post office PPF scheme has been in force since April 1, 2020.

## INDmoney PPF Calculator in Post Office: Guide to Use

Using the IDNmoney post office PPF calculator is easy and can be done in a few simple steps.

**Step 1: **Open INDmoney post office on your smartphone or computer

**Step 2: **Enter the following details: yearly investment and the time period.

Based on your given inputs, the calculator will show you:

**Total invested amount:**The total amount you would have invested by the time of maturity of your PPF**Total interest earned:**Total amount of interest earned on your contributions made in the PPF account**Maturity value:**The final value of maturity that you will receive by the end of your PPF investment tenure

Using INDmoney post office PPF calculator helps you in a number of ways which we will discuss in the next section.

## Perks of Using INDmoney Post Office PPF Calculator

Here are the advantages of using INDmoney PPF calculator:

The PPF return calculation formula is quite difficult to deal with. The post office PPF calculator does the job for you by using the formula and showing you the results instantly.

- The calculator shows the relevant return figures instantly, which saves you time and effort.
- Since the PPF interest rate post office is fixed, the INDmoney post office PPF calculator takes the applicable interest rate by default so that you do not have to enter the interest rate every time you use the calculator.
- Having the figures of returns beforehand will help you to plan your investments in a better way. You can decide the yearly investment amount as per your financial goals in order to make an efficient investment.

Hence, we learnt how a post office PPF calculator can help you to estimate returns from your PPF investments so that you can save and grow your money effectively. Post office PPF is a savings scheme if you are looking for guaranteed returns. Investing money in PPF allows you to build a substantial corpus which is beneficial in retirement planning. You can use the post office PPF calculator to plan your investment by knowing the returns that you can earn beforehand.

### Frequently Asked Questions

#### Which is better- FD or PPF?

PPF allows you to invest periodically and offers a higher interest rate than a FD. You can build a healthy corpus in 15-20 years through PPF investment.

#### What is the maximum investment tenure in the post office PPF scheme?

The maximum investment tenure in PPF is 15 years. However, you can extend that for 5 more years after the completion of the initial 15 years.