Public Provident Fund Calculator: The Public Provident Fund, or PPF, was launched by the Indian government years ago to benefit small savers, who do not have a risk taking appetite. It is one of the most popular government-backed saving schemes in India. PPF is a long-term investment option that comes with a sovereign guarantee. Not just generally higher than FD returns, the PPF scheme comes power-packed with several benefits for the common man. You can use the PPF account to accumulate wealth over the long term.
Here are the Features of PPF
– Investors can invest as low as Rs 500 per year, and as high as Rs 1.5 lakh per year, in their PPF accounts.
– Investors can invest their money in their PPF account for as many as 15 years in a row, as per the guidelines. However, if one does not need the money at the end of 15 years, he or she can can extend the tenure of the PPF account for as many years as needed. This can be done in blocks of five years by submitting a PPF Account Extension Form.
– PPF is also one of the very few schemes that provides an option to the public to save taxes with its Exempt-Exempt-Exempt (EEE) feature, meaning that it is totally a tax free savings option. There will be no tax deducted on principal, profit and the accumulated amount on withdrawal.
– A single adult who is a resident Indian can open a PPF account, while a guardian on behalf of minor/ person of unsound mind can also invest in PPF.
PPF Interest Rates
The government has said that interest rates for PPF will remain unchanged for the July-September 2022 quarter. PPF provides one of the highest interest rates among small savings schemes at 7.1 per cent per annum.
Here is How You Can Withdraw PPF Money
For premature withdrawals, a subscriber can take one withdrawal during a financial after five years excluding the year of account opening. Only 50 per cent of the balance at the credit at the end of fourth preceding year or at the end of preceding year, whichever is lower, can be withdrawn.
After 15 years, a PPF subscriber take maturity payment by submitting account closure form along with passbook at the concerned Post Office.
(b) He or she can also retain the maturity value in his/ her account further without deposit. In this case, the PPF interest rate will be applicable and payment can be taken any time. Alternatively, the subscriber can take one withdrawal in each financial year.
(c) The subscriber can also extend his/ her account for further block of five years and so on (within one years of maturity) by submitting prescribed extension form at concerned Post Office.
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