The Public Provident Fund (PPF) at the post office is a savings plan that helps you save money. It has a lock-in period of 15 years, but you can extend it in blocks of 5 years. PPF is a popular investment scheme when it comes to tax savings. Investments up to a limit of Rs 1.5 lakh in a year in a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. You can benefit from the Public Provident Fund account at a post office or a bank, whichever is most suitable for you. Both offer the same benefits. Thus, on that note, let’s find out how much you will earn in 20 years by investing Rs 3,000, Rs 6,000, and Rs 9,000 monthly in PPF.

PPF Account: Post Office vs Bank – Which is better?

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 can open a PPF account?

• Any adult who is a resident of India can open a PPF account.
• 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.

What are minimum and maximum deposit amounts in PPF?

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.
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.

What is lock-in period of PPF account?

The account matures after 15 financial years, excluding the financial year of account opening.

What is next step after maturity of PPF account?

The depositor 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.

What are withdrawal rules in PPF account?

Here are the rules regarding withdrawals from a PPF account:

• A subscriber 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 3,000, Rs 6,000, Rs 9,000
• Annualised rate of return: 7.1 per cent
• Investment period: 20 years

What will be PPF corpus after 20 years with an investment of Rs 3,000 per month?

Annual investment: Rs 36,000 (3,000×12)
Your total investment amount over 20 years will be Rs 7,20,000. The estimated interest earned during this period will be Rs 8,77,989, and the estimated maturity amount will be Rs 15,97,989. 

What will be PPF corpus after 20 years with an investment of Rs 6,000 per month?

Annual investment: Rs 72,000 (6,000×12)
Your total investment amount over 20 years will be Rs 14,40,000. The estimated interest earned during this period will be Rs 17,55,978, and the estimated maturity amount will be Rs 31,95,978.

What will be PPF corpus after 20 years with an investment of Rs 9,000 per month?

Annual investment: Rs 1,08,000 (9,000×12)
Your total investment amount over 20 years will be Rs 21,60,000. The estimated interest earned during this period will be Rs 26,33,967, and the estimated maturity amount will be Rs 47,93,967.

DISCLAIMER: Not financial advice; invest at your own risk