PPF Calculator to change into a crorepati: Public Provident Fund (PPF) is a extensively favored funding selection that gives assured returns backed by the federal government. PPF is considered probably the most safe funding choices, making it appropriate for retirement planning and attaining long-term monetary aims reminiscent of weddings, your kid’s schooling, and extra.
PPF Curiosity Charge:
The rate of interest for Public Provident Fund is about by the Ministry of Finance on a quarterly foundation, so it will probably change each three months. At current the PPF rate of interest stands at 7.1% for the October to December 2024 quarter.
Curiosity is calculated primarily based on the bottom stability in your PPF account between the shut of the fifth day and the tip of the month. The curiosity earned is credited to your account on the finish of every monetary yr.
PPF Account Maturity
A PPF account reaches maturity 15 years after its opening, excluding the yr it was initiated. Upon maturity, account holders have three choices: shut the account and withdraw all funds by submitting a closure kind and passbook; maintain the account open with out additional deposits, proceed incomes curiosity, and make withdrawals as soon as per monetary yr or at any time; or lengthen the account for a further 5 years, with the choice to resume each 5 years by submitting an extension kind inside a yr of maturity.
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How a lot will I get after 15 years in PPF?
Investing in (PPF can yield important returns over the long run. If you happen to make investments the utmost permissible quantity of Rs 1.5 lakh in a single installment on the prevailing rate of interest of seven.1%, you’ll obtain a complete corpus of Rs 40,68,209/- after 15 years. This sum includes your funding of Rs 22,50,000/- over 15 years and the accrued curiosity of Rs 18,18,209/-.
How can I earn over Rs 1 crore from PPF?
After 15 years, you have got the choice of extending your PPF account for a block of 5 years. If you happen to avail this feature twice, which implies that you spend money on PPF for 25 years, then your corpus on the finish of the interval will probably be Rs 1,03,08,014.97/-, that’s over Rs 1 crore.
If you happen to select to increase your PPF account additional for an additional interval of 5 years, taking the full funding interval to 30 years, the accrued corpus can be Rs 1,54,50,910.59/-, that’s over RS 1.5 crore. This contains the cumulative funding of Rs 45 lakh out of your finish, and an curiosity payout of Rs 1,09,50,911/-
PPF Account Stability
To open a PPF account, you could deposit a minimal of Rs 500 in a monetary yr, with a most restrict of Rs 1.5 lakh. This most restrict applies to your private account and any accounts you keep for minors.
You will have the flexibleness to deposit in a number of installments, with every installment being no less than Rs 50, so long as the full quantity doesn’t exceed Rs 1.5 lakh for the yr.
PPF Tax Advantages
One of many key benefits of investing in a PPF is the tax advantages it presents. Deposits made right into a PPF account qualify for deductions underneath Part 80C of the Revenue Tax Act. Moreover, the curiosity earned and the maturity quantity are tax-free!
Which means that PPF is an EEE (Exempt, Exempt, Exempt) funding product, offering tax exemptions in any respect phases of the funding course of.
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Withdrawals from PPF Account
As soon as a minimal of 5 years has handed from the tip of the monetary yr through which you opened your PPF account, you can also make one withdrawal per monetary yr. The utmost withdrawal quantity is 50% of the stability on the finish of both the fourth previous monetary yr or the newest monetary yr, whichever is decrease.
PPF FAQs
Can I make investments 2 lakhs in PPF?
No. The utmost funding restrict in PPF per yr is Rs 1.5 lakh.
Can I deposit 1.5 lakh in PPF yearly?
Sure, you’ll be able to make investments a most of Rs 1.5 lakh in your PPF account in a yr.
Can I withdraw PPF after 5 years?
Sure, you can also make partial withdrawals out of your PPF account after 5 years of funding into it. Nonetheless, the withdrawals are topic to guidelines as talked about within the article above.
