Public Provident Fund (PPF) offers guaranteed returns as it is backed by the Indian government. It is considered a low-risk investment. PPF falls under the EEE category, which means that deposits, interest, and withdrawals are all tax-exempt. Thus, let’s find out how much you will earn in 15 years with monthly investments of Rs 5K-11K in the Post Office Public Provident Fund.
Choosing best option for your PPF Account: Post Office or Bank?
When choosing where to open a PPF account, you can opt for either a bank or a post office, as both offer the same rules and benefits.
Who is eligible to open a PPF account?
1. Resident Indian Adult: A single adult who is a resident of India can open a PPF account.
2. Guardian for Minor/Person: A guardian can open a PPF account on behalf of a minor or a person.
Only one PPF account can be opened across the country, either in a post office or a bank.
PPF deposit rules
1. Minimum and Maximum Deposit: The minimum deposit required in a financial year is Rs 500, while the maximum deposit allowed is Rs 1.50 lakh.
2. Combined Deposit Limit: The maximum limit of Rs 1.50 lakh applies to the combined deposits made in: Your own PPF account or a PPF account opened on behalf of a minor.
PPF account maturity options: What you need to know
The account matures after 15 financial years, excluding the financial year of account opening.
What to do after PPF maturity
You can take the maturity payment by submitting the account closure form along with the passbook at the concerned Post Office.
The depositor can retain the maturity value in the account without making further deposits, and the applicable PPF interest rate will still be earned; the payment can be taken at any time, or one withdrawal can be made per financial year.
The depositor can also extend the account for a further block of 5 years, and so on, within one year of maturity, by submitting the prescribed extension form at the concerned Post Office.
PPF account withdrawal rules
Here are the rules regarding withdrawals from a PPF account:
You can make one withdrawal per financial year, but only after five years from the date of account opening, excluding the year of account opening.
The amount of withdrawal allowed is up to 50 per cent of the balance credited to the account at the end of the fourth preceding year or the end of the preceding year, whichever is lower.
Post office PPF calculation conditions
Investment amount: Rs 5,000, Rs 9,000, Rs 11,000
Annualised rate of return: 7.1 per cent
Investment period: 15 years
What will be PPF corpus after 15 years with an investment of Rs 5,000 per month?
Annual investment: Rs 60,000 (5,000×12)
Your total investment amount over 15 years will be Rs 9,00,000. The estimated interest earned during this period will be Rs 7,27,284 and the estimated maturity amount will be Rs 16,27,284.
What will be PPF corpus after 15 years with an investment of Rs 9,000 per month?
Annual investment: Rs 1,08,000 (9,000×12)
Your total investment amount over 15 years will be Rs 16,20,000. The estimated interest earned during this period will be Rs 13,09,111 and the estimated maturity amount will be Rs 29,29,111.
What will be PPF corpus after 15 years with an investment of Rs 11,000 per month?
Annual investment: Rs 1,32,000 (11,000×12)
Your total investment amount over 15 years will be Rs 19,80,000. The estimated interest earned during this period will be Rs 16,00,024 and the estimated maturity amount will be Rs 35,80,024.
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)
