PPF Calculator to become a crorepati: Public Provident Fund (PPF) is a widely favored investment choice that provides guaranteed returns backed by the government. PPF is regarded as one of the most secure investment options, making it suitable for retirement planning and achieving long-term financial objectives such as weddings, your child’s education, and more.

PPF Interest Rate:

The interest rate for Public Provident Fund is set by the Ministry of Finance on a quarterly basis, so it can change every three months. At present the PPF interest rate stands at 7.1% for the October to December 2024 quarter.
Interest is calculated based on the lowest balance in your PPF account between the close of the 5th day and the end of the month. The interest earned is credited to your account at the end of each financial year.

PPF Account Maturity

A PPF account reaches maturity 15 years after its opening, excluding the year it was initiated. Upon maturity, account holders have three options: close the account and withdraw all funds by submitting a closure form and passbook; keep the account open without further deposits, continue earning interest, and make withdrawals once per financial year or at any time; or extend the account for an additional five years, with the option to renew every five years by submitting an extension form within a year of maturity.
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How much will I get after 15 years in PPF?

Investing in (PPF can yield significant returns over the long term. If you invest the maximum permissible amount of Rs 1.5 lakh in a single installment at the prevailing interest rate of 7.1%, you will receive a total corpus of Rs 40,68,209/- after 15 years. This sum comprises your investment of Rs 22,50,000/- over 15 years and the accumulated interest of Rs 18,18,209/-.

How can I earn over Rs 1 crore from PPF?

After 15 years, you have the option of extending your PPF account for a block of 5 years. If you avail this option twice, which means that you invest in PPF for 25 years, then your corpus at the end of the period will be Rs 1,03,08,014.97/-, that is over Rs 1 crore.
If you choose to extend your PPF account further for another period of 5 years, taking the total investment period to 30 years, the accumulated corpus would be Rs 1,54,50,910.59/-, that is over RS 1.5 crore. This includes the cumulative investment of Rs 45 lakh from your end, and an interest payout of Rs 1,09,50,911/-

PPF Account Balance

To open a PPF account, you must deposit a minimum of Rs 500 in a financial year, with a maximum limit of Rs 1.5 lakh. This maximum limit applies to your personal account and any accounts you maintain for minors.
You have the flexibility to deposit in multiple installments, with each installment being at least Rs 50, as long as the total amount does not exceed Rs 1.5 lakh for the year.

PPF Tax Benefits

One of the key advantages of investing in a PPF is the tax benefits it offers. Deposits made into a PPF account qualify for deductions under Section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount are tax-free!
This means that PPF is an EEE (Exempt, Exempt, Exempt) investment product, providing tax exemptions at all stages of the investment process.
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Withdrawals from PPF Account

Once a minimum of five years has passed from the end of the financial year in which you opened your PPF account, you can make one withdrawal per financial year. The maximum withdrawal amount is 50% of the balance at the end of either the fourth preceding financial year or the most recent financial year, whichever is lower.

PPF FAQs

Can I invest 2 lakhs in PPF?
No. The maximum investment limit in PPF per year is Rs 1.5 lakh.
Can I deposit 1.5 lakh in PPF every year?
Yes, you can invest a maximum of Rs 1.5 lakh in your PPF account in a year.
Can I withdraw PPF after 5 years?
Yes, you can make partial withdrawals from your PPF account after 5 years of investment into it. However, the withdrawals are subject to rules as mentioned in the article above.