Public Provident Fund (PPF) Calculator
Investment Details
What is an PPF?
A Public Provident Fund (PPF) is a long-term, government-backed savings scheme in India. It is a popular investment option due to its tax benefits under Section 80C of the Income Tax Act, where investments, interest earned, and withdrawals are all tax-free (E-E-E status). PPF accounts have a minimum maturity period of 15 years, which can be extended in blocks of 5 years.
How PPF is Calculated?
PPF interest is calculated annually but is compounded on a monthly basis. The interest for a given month is calculated on the lowest balance in your account between the 5th and the last day of the month. This means for your deposit to start earning interest in the same month, you must deposit it before the 5th of that month. The final interest is credited to the account at the end of each financial year.
Financial Insights
Here are some smart recommendations and tips to help you manage your investments:
- To maximize returns: To get the most out of your PPF, make sure to deposit your annual contribution as a lump sum before April 5th of each financial year.
- Compare with other options: Compare your options with our other tools. SIP Calculator | FD Calculator | RD Calculator
