PPF calculator: How much will my monthly investment of Rs. 12,000 mature for ?

In case you’re searching for a secure investment, the Public Provident Fund (PPF) can be a suitable choice. This government-backed program can be opened at the post office and banks alike. At the moment, it provides a 7.1% annual compound interest rate. It can be invested in up to Rs 1,50,000 per fiscal year. Nonetheless, just one account—at a bank or post office—may be created nationally under one name. Under the Income Tax Act’s Section 80C, investors are also eligible for tax deductions.

PPF computation

A Public Provident Fund (PPF) with an annual interest rate of 7.10 percent would yield a maturity amount of Rs 37,86,820 if you invested Rs 12,000 a month for 15 years. Your total deposits would be Rs 21,60,000 throughout this time, and you would earn Rs 16,26,820 in interest overall. This highlights the long-term tax advantages and compound growth of PPF investments, which make it a well-liked option for conservative investors seeking stable returns and wealth building.

PPF maximum deposit

A minimum deposit of Rs. 500 and a maximum of Rs. 1.50 lakh can be placed into the Public Provident Fund per financial year. This amount can be deposited into the account holder’s personal account or on behalf of minors. Up to an annual cap of Rs 1.50 lakh, deposits may be made in any number of payments spread out over the course of the year in multiples of Rs 50. Both cash and checks can be used to start accounts, with the date of realization of the check in the government account serving as the account’s opening or subsequent deposit date. Investors profit tax-wise from these deposits because they are deductible under Section 80C of the Income Tax Act.

In the case that the account holder passes away, what happens to the account ?

The PPF account will be closed upon the death of the account holder, and neither the nominee nor the heir(s) by law will be able to make additional deposits into the account. In the event that the account holder passes away and the account is closed, the PPF interest rate will be paid through the end of the previous month.