PPF Calculation: How much will you earn in 20 years by investing Rs 2,000, Rs 6,000, and Rs 10,000 monthly in post office Public Provident Fund?
Among the Post Office's several investment schemes, PPf is quite popular. It is well-known for its guaranteed returns and tax benefits on up to 1.5 lakh investments in a year under Section 80C of the Income Tax Act. The Public Provident Fund has a lock-in period of 15 years, which can be extended in 5-year blocks.
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Public Provident Fund (PPF) is a long-term savings scheme backed by the Indian government. The deposits, interest, and withdrawals are tax-exempt in PPF. It has a lock-in period of 15 years, but the depositor can also extend the account for a further block of 5 years, and so on. There are more interesting features of PPF that you can benefit from. To learn more, go through the article and find out how much you will earn in 20 years by investing Rs 2,000, Rs 6,000, and Rs 10,000 monthly in the Post Office Public Provident Fund.
Where should you open PPF account? Post Office vs Bank
When choosing where to open a PPF account, you can choose either a bank or a post office, as both offer the same rules and benefits.
Who is eligible to open PPF account?
- Any single 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 is maximum and minimum 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.
What is maturity period of PPF account?
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 investor 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 investor 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 PPF 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 2,000, Rs 6,000, Rs 10,000
- 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 2,000 per month?
Annual investment: Rs 24,000 (2,000x12)
Your total investment amount over 20 years will be Rs 4,80,000. The estimated interest earned during this period will be Rs 5,85,326 and the estimated maturity amount will be Rs 10,65,326.
What will be PPF corpus after 20 years with an investment of Rs 6,000 per month?
Annual investment: Rs 72,000 (6,000x12)
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 10,000 per month?
Annual investment: Rs 1,20,000 (10,000x12)
Your total investment amount over 20 years will be Rs 24,00,000. The estimated interest earned during this period will be Rs 29,26,631 and the estimated maturity amount will be Rs 53,26,631.
(Disclaimer: Our calculations are projections and not investment advice. Do your own due diligence or consult an expert for financial planning)
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