PPF Calculation: How much will you earn in 20 years by investing Rs 8,000, Rs 10,000, and Rs 12,000 monthly in Post Office Public Provident Fund?
The post office offers several investment schemes, one of which is the Public Provident Fund (PPF). It's popular for its guaranteed returns and tax benefits on investments up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act. It has a lock-in period of 15 years, but the depositor can also extend the account for further blocks of 5 years.
Building a sizeable corpus in a short span of 15 to 20 years can be fascinating, especially with guaranteed returns and tax benefits. With no risk of losing your investment or uncertainty about returns, it's an attractive option. Let's calculate how much you can earn in 20 years by investing Rs 8,000 to Rs 12,000 monthly in a Post Office Public Provident Fund.
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What is Public Provident Fund?
The Public Provident Fund (PPF) is a government-backed savings plan that helps you save money for the long term, offering tax benefits and guaranteed returns 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
The minimum deposit required in a year is Rs 500, while the maximum deposit allowed is Rs 1.50 lakh.
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 these options:
1. Withdraw the money: Close the account and get your maturity amount.
2. Keep the money invested: Leave the amount in the account and continue earning interest. You can withdraw it whenever needed.
3. Extend the account: Renew the PPF account for another 5 years without withdrawing the money.
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.
PPF calculation conditions
Investment amount: Rs 8,000, Rs 10,000, Rs 12,000
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 8,000 per month?
Annual investment: Rs 96,000 (8,000x12)
Your total investment amount in 20 years will be Rs 19,20,000. The estimated interest earned during that period will be Rs 23,41,304, and the estimated maturity amount will be Rs 42,61,304.
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 in 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.
What will be PPF corpus after 20 years with an investment of Rs 12,000 per month?
Annual investment: Rs 1,44,000 (12,000x12)
Your total investment amount in 20 years will be Rs 28,80,000. The estimated interest will be Rs 35,11,957, and the estimated maturity amount will be Rs 63,91,957.