PPF Calculation: How much will you earn in 20 years by investing Rs 3,000, Rs 7,000, and Rs 11,000 monthly in post office Public Provident Fund?

Earning a sizeable corpus in a short period, like 15 to 20 years, can be quite fascinating. Plus, if it guarantees a return along with tax benefits, that is an add-on to its value. As there is no risk of losing your investment amount and no uncertainties about not getting a return. So, on that account, let's quickly find out how much you will earn in 20 years by investing Rs 3,000 to Rs 11,000 monthly in a Post Office Public Provident Fund.

What is Post Office Public Provident Fund?

The Public Provident Fund (PPF) at the post office is a savings plan that helps you save money for the long term. It's backed by the government, offers tax benefits, and guarantees returns, helping to secure your financial future.

Who is eligible to open 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 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 to 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 to do after PPF Maturity?

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.

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 3,000, Rs 7,000, Rs 11,000
• 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 (3,000x12)
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 7,000 per month?

Annual investment: Rs 84,000 (7,000x12)
Your total investment amount over 20 years will be Rs 16,80,000. The estimated interest earned during this period will be Rs 20,48,641 and the estimated maturity amount will be Rs 37,28,641.

What will be PPF corpus after 20 years with an investment of Rs 11,000 per month?

Annual investment: Rs 1,32,000 (11,000x12)
Your total investment amount over 20 years will be Rs 26,40,000. The estimated interest earned during this period will be Rs 32,19,294 and the estimated maturity amount will be Rs 58,59,294.

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)