Results:
Total Contributions: ₹
Interest Earned: ₹
Maturity Amount: ₹
The Public Provident Fund (PPF) is a long-term investment scheme backed by the Government of India. It is designed to promote savings and provide tax benefits under Section 80C of the Income Tax Act. PPF accounts have a lock-in period of 15 years, with an option to extend in blocks of 5 years.
PPF Features:
- Minimum Deposit: ₹500 per year.
- Maximum Deposit: ₹1,50,000 per year.
- Interest Rate: Currently, 7.1% per annum ( subject to change quarterly by the government ).
- Tenure: 15 years (extendable by 5-year blocks).
- Tax Benefits: Contributions, interest earned, and maturity amount are tax-free.
How to Calculate PPF Returns
Decide your yearly contribution.
Use the interest rate applicable for the current quarter.
Specify the tenure of your PPF account.
Use the formula:
$$ Maturity = \sum_{n=1}^{N} Contribution \times (1 + r)^t $$
r: Annual interest rate divided by 100
t: Remaining years until maturity
N: Total number of contributions