The Post Office Public Provident Fund offers an interest rate of 7.1 percent. It is a government-backed investment scheme that offers tax benefits and guaranteed returns. PPF is a popular investment scheme when it comes to tax savings, it is eligible for tax deductions under Section 80C of the Income Tax Act. 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. On that note, let’s find out how much you will earn in 25 years by investing Rs 4,000 to Rs 11,000 monthly in Post Office Public Provident Fund.
Post Office or Bank: Which is better for a PPF account?
When opening a PPF account, you can choose between a bank and a post office. Both offer the same benefits and rules, so it comes down to your personal preference.
Who is eligible to open a PPF account?
Any adult Indian resident can open a PPF account. A guardian can also open an account for a minor. You can only have one PPF account in the country, either in a post office or a bank.
What are the minimum and maximum deposit limits in PPF?
The minimum deposit required per year is Rs 500, and the maximum deposit allowed in a year is Rs 1.50 lakh. This limit applies to combined deposits made in your own account or an account opened for a minor.
What is Lock-in period of a PPF account?
A PPF account has a lock-in period of 15 years, meaning you can’t withdraw the money until the account matures, which is 15 years after opening.
What to do after your PPF account matures?
To get your maturity payment, submit an account closure form and your passbook to the Post Office where your account is held.
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 for a PPF account?
You can withdraw from your PPF account only after 5 years from opening. You can make one withdrawal per year, and it’s allowed only after the initial 5-year lock-in period.
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 4,000, Rs 8,000, Rs 11,000
- Annualised rate of return: 7.1 per cent
- Investment period: 25 years
What will be PPF corpus after 25 years with an investment of Rs 4,000 per month?
Annual investment: Rs 48,000 (4,000×12)
Your total investment amount over 25 years will be Rs 12,00,000. The estimated interest earned during this period will be Rs 20,98,565, and the estimated maturity amount will be Rs 32,98,565.
What will be PPF corpus after 25 years with an investment of Rs 8,000 per month?
Annual investment: Rs 96,000 (8,000×12)
Your total investment amount over 25 years will be Rs 24,00,000. The estimated interest earned during this period will be Rs 41,97,130, and the estimated maturity amount will be Rs 65,97,130.
What will be PPF corpus after 25 years with an investment of Rs 11,000 per month?
Annual investment: Rs 1,32,000 (11,000×12)
Your total investment amount over 25 years will be Rs 33,00,000. The estimated interest earned during this period will be Rs 57,71,053, and the estimated maturity amount will be Rs 90,71,053.
DISCLAIMER: Not financial advice; invest at your own risk
