Public Provident Fund (PPF) is a government-backed investment scheme that is designed to encourage savings for retirement. PPF is popular because it offers a combination of safety, guaranteed returns, and tax benefits. Investments in Public Provident Fund are tax-deductible under Section 80C of the Income Tax Act, and the interest earned is also exempt from income tax. Thus, let’s find out how much you will earn in 18 years by investing Rs 3,000 to Rs 9,000 monthly in Post Office Public Provident Fund.
Post Office Public Provident Fund
The Public Provident Fund (PPF) at the post office is a savings scheme that allows you to save money for the long term. It’s a government-backed plan that offers tax benefits and guarantees returns to help secure your financial future.
What is eligibility to open a PPF account?
Any individual, including those who are employed, self-employed, or pensioners, 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 is minimum & maximum deposit amount in Post Office PPF?
1. 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.
Where can you open a PPF account: Post Office or Bank?
You can open a PPF account at either a post office or a bank. Both options have the same rules and benefits, so you can choose the one that’s most convenient for you.
What is maturity period of PPF account?
The account matures after 15 financial years, excluding the financial year of account opening.
What is the next step after PPF matures?
When your PPF account matures, you have a few options:
1. Take the maturity amount: Fill out the account closure form, submit it with your passbook, and get your money.
2. Keep the money in the account: You can leave the maturity amount in the account and still earn interest. You can withdraw the money anytime or make one withdrawal per year.
3. Extend the account: Within one year of maturity, you can extend your PPF account for another 5 years by submitting an extension form at the post office.
How much can you withdraw from PPF account?
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 3,000, Rs 6,000, Rs 9,000
- Annualised rate of return: 7.1 per cent
- Investment period: 18 years
What will be PPF corpus after 18 years with an investment of Rs 3,000 per month?
Annual investment: Rs 36,000 (3,000×12)
Your total investment amount over 18 years will be Rs 6,48,000. The estimated interest earned during this period will be Rs 6,75,527 and the estimated maturity amount will be Rs 13,23,527.
What will be PPF corpus after 18 years with an investment of Rs 6,000 per month?
Annual investment: Rs 72,000 (6,000×12)
Your total investment amount over 18 years will be Rs 12,96,000. The estimated interest earned during this period will be Rs 13,51,054 and the estimated maturity amount will be Rs 26,47,054.
What will be PPF corpus after 18 years with an investment of Rs 9,000 per month?
Annual investment: Rs 1,08,000 (9,000×12)
Your total investment amount over 18 years will be Rs 19,44,000. The estimated interest earned during this period will be Rs 20,26,581 and the estimated maturity amount will be Rs 39,70,581.
DISCLAIMER: Not financial advice; invest at your own risk
