PPF Calculator - Public Provident Fund Returns Calculator

PPF is a long-term savings scheme backed by the Government of India. Key features include:

• Government-guaranteed returns
• Complete tax-free returns (EEE category)
• 15-year lock-in period
• Interest rates revised quarterly
• Can be opened at banks or post offices

Investment limits and rules:

• Minimum: ₹500 per year
• Maximum: ₹1.5 lakh per year
• Deposits can be made in lump sum or 12 installments
• Only one account per person (except for guardian accounts)
• Investments beyond ₹1.5 lakh are not eligible for interest

Interest calculation method:

• Interest is calculated on the lowest balance between 5th and last day of each month
• Interest is credited annually at the end of financial year
• Interest rates are reviewed and announced quarterly by government
• Interest earned is completely tax-free
• Interest is compounded annually

PPF offers triple tax benefits (EEE):

• Investment up to ₹1.5 lakh deductible under Section 80C
• Interest earned is tax-free
• Maturity amount is completely tax-free
• Loan against PPF is also tax-free
• Withdrawals are exempt from tax

Loan and withdrawal provisions:

• Loan available from 3rd to 6th year
• Partial withdrawal allowed from 7th year onwards
• Loan amount: Up to 25% of balance of 2nd preceding year
• Loan interest rate: 1% higher than PPF interest rate
• Loan must be repaid within 36 months

Post-maturity options:

• Complete withdrawal of entire amount
• Extension in blocks of 5 years with or without fresh contributions
• One withdrawal per year allowed during extension
• Same interest rate applicable during extension
• Unlimited number of extensions possible

Rules regarding multiple accounts:

• Only one PPF account allowed per person
• Exception: Can open account for minor children as guardian
• Joint PPF accounts not allowed
• HUF cannot open PPF account
• Second account if opened will be treated as irregular

Death claim process:

• Balance transferred to nominee/legal heirs
• Interest continues till settlement of claim
• No penalty for premature closure
• Nominee can continue the account till maturity
• Death certificate and legal documents required for settlement

Transfer process:

• Can be transferred between post office and banks
• Submit transfer application at current branch
• No fee for transfer
• Account number remains same after transfer
• Transfer possible across cities

Required documents:

• PAN Card
• Address proof (Aadhaar/Passport/Driving License)
• Recent photograph
• Initial deposit (minimum ₹500)
• Nomination form

Key differences:

• PPF has complete tax exemption, FD interest is taxable
• PPF has government guarantee, FD has only bank guarantee
• PPF has 15-year lock-in, FD has flexible tenures
• PPF interest rates are generally higher
• PPF has investment limits, FD has no upper limit