PPF Calculator, PPF Interest Rate 2024: Can you make a corpus of Rs 1 crore by investing in the Public Provident Fund (PPF). It is one of the most popular saving instruments for people as the retirement saving scheme offers the benefit of compounding and tax-free returns. PPF earns an interest rate of 7.1% annually at present.

What is the minimum and maximum investment one can make under PPF?

Under PPF, you can start with a minimum deposit of Rs 500 and invest up to Rs 1,50,000 in a financial year. Investment in PPF can be made in lump sum or in a maximum of 12 instalments. One of the key advantages is its tax benefits. PPF deposits qualify for deductions under Section 80C of the Income Tax Act, and the interest earned is exempt from income tax under Section 10.

Loan facilities are available on PPF account after three years of continuous investment. While partial withdrawal is allowed from the PPF account from the seventh financial year onwards. The PPF account, however, matures after 15 complete financial years from the date of its opening. After that, the PPF subscriber is given an option to extend the matured amount investment in blocks of five years.

Also read: PPF Golden Era: THESE investors turned Rs 1 lakh annual investment to Rs 37 lakh in 14 years!

How does PPF calculation work?

By investing Rs 1,50,000 per month, you can accumulate a corpus of Rs 40.68 lakh in 15 years as the account matures. If the account is not closed at maturity and the investor remains invested for another 10 years, in two blocks of 5 years each, the corpus would turn into Rs 1 crore.

Over a period of 25 years, you deposit Rs 37.50 lakh and earn an interest of Rs 65.58 lakh. At the end of investment period, your total corpus would be Rs 1.03 crore.

To extend their account, PPF depositors have to notify and submit Form 4 to the concerned post office or bank within 1 year of the account maturity.

How is interest calculated under PPF?

For any given month, investments made on or before the 5th of the month will be considered for interest calculation for that month. Interest is calculated on the lower of the balance held on the 5th of a month to the end of the month.

What are the grounds on which a PPF account can be closed before maturity?

PPF can be closed on any of the following grounds:

If the amount is required for the treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children or parents.

If the amount is required for higher education of the account holder or the Minor account holder (on production of documents in confirmation of admission) in a recognized institute of higher education in India or abroad.

If the customer changes residential status.

A PPF account cannot be closed under any circumstances before the expiry of 5 years from the end of the year in which the account was opened.