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# Public Provident Fund (PPF) Calculator 2023

Public Provident Fund (PPF) calculator computes of future savings based upon your periodic investments, frequency of investment, interest rate (7.1% currently) and time horizon of investment (min 15 Years).

Fintra's PPF Calculator is easy to use and a handy tool to assist you in performing complicated PPF related calculations with ease. With our calculator, easily calculate your year-wise PPF returns earned by your contributions to your PPF account over a pre-determined time period with a specific frequency. Since the interest rate, maturity, taxation, and withdrawal rules for PPF are determined by India's government, they mostly remain the same irrespective of where PPF account is opened.

## How to use Fintra's PPF Calculator?

To use Finta's PPF calculator accurately, you need to provide the following data:

• Amount Invested– This refers to the amount deposited in the account as per the deposit frequency.
• Deposit Frequency – The Frequency can be either monthly, quarterly, half-yearly and annually. If the frequency is quarterly, then the deposits will be made every quarter, half-yearly deposits will be twice each year and so on.
• Interest Rate – It's the PPF rate of return expected on your investment.
• Tenure of the PPF account – The minimum is 15 years and max is 50 years with the option of extension in blocks of 5 years.

When all data has been filled in into the PPF calculator, click on “Submit” and instantly results will be shown beside the calculator.

## What are recent PPF Interest Rates?

As of FY January to March 2023 quarter, the PPF interest rate is 7.1% p.a. Moreover, the applicable interest rate for the Public Provident Fund is decided by India's Ministry of Finance, and it is liable to change it every quarter. Use Fintra's calculator to obtain PPF returns based on varying interest rates.

## FAQs about Public Provident Fund (PPF) Calculator

What are the PPF Calculation Formula & Basic Rules?

The PPF calculation involves the compound interest calculation formula and the PPF principal compounding occurs once a year. Following is the PPF calculation formula:

A = P(1+r)^t

Where,

A = PPF Maturity Amount

P = PPF Principal amount invested

R = PPF rate of interest

T = Time period

The above PPF interest calculation formula reveals the fact that the longer funds stay invested, the greater interest you'll earn on the PPF account.

Can a PPF account be transferred to another branch or office?

Yes, you can transfer the account to another office or branch.

How much interest rate can be obtained on a PPF account?

The interest rate is determined by India's Central Government periodically. At present, for FY January to March 2023 quarter, the PPF interest rate is 7.1% p.a.

When is the investment going to mature?

For PPF accounts, maturity is attained after 15 years. After this period, you can and are liable to withdraw the entire amount.

#### What are PPF Withdrawal Rules?

After completing 15 years, calculated from the day the PPF account was opened, the PPF account matures. At maturity, PPF account's entire balance can be withdrawn, however. PPF account holders can begin to make partial withdrawals from their account after the end of the 6th year. For partial PPF withdrawal, the qualifying amount is automatically calculated by the PPF calculator and is the lesser of the following amounts:

Option 1:  The PPF account balance up to 50% in the year preceding the year of a loan application or

Option 2. The PPF account balance up to 50% in the 4th financial year preceding the year of the loan application.

What are the benefits of PPF?

1. Since it is backed by the Indian Government, the PPF investments have low-risk factors
2. PPF accounts can be opened at nationalised banks, post offices, public banks, and selective private banks.
3. Although the lock-in period is 15 years, there are provisions to withdraw funds or take loans after 7 years. In fact, PPF returns are more attractive than to the bank FDs.
4. PPF deposits fall under EEE (exempt-exempt-exempt) category- That means, the principal invested, the interest earned, and the proceeds received at maturity are all tax-exempt. The amounts that are deposited in spouse’s or child’s PPF account will also be tax-exempt.

How to open a PPF account?

Opening a PPF account is very simple. You just need to submit an application form along with your details such as KYC, address proof, identity proof, and signature proof. You can open a PPF account with a Post Office or in any other nationalized banks. Moreover, some private banks are authorized to assist you to open PPF accounts.

Is PPF interest the same in all banks?

Since the PPF is a government-run scheme, the interest rate stays the same in all banks for PPF.

What is the difference between PPF account and Employee Provident Fund account (EPF)?

Employees’ Provident Fund (EPF) is a government savings scheme created for employees of the organised sector. Its interest rate is declared every year by the EPFO (Employees Provident Fund Organisation) that is a lawful body under the Employees’ Provident Fund Act, 1956. The interest rate on EPF account for the current financial year is set at 8.50%. Only those employees of companies can invest in the EPF or PF who are registered under the EPF Act. Both the employer and employee contribute 12% of the employee’s basic salary and dearness allowance every month to the EPF account.

On the other hand, PPF or Public Provident Fund is a government-backed savings scheme. It is for everyone, employed, self-employed, unemployed, or even retired. Though it's not mandatory, anyone can contribute any amount of funds to the PPF subject to a minimum of Rs 500 and maximum of Rs 1.5 lakh per year. It's fixed return is set by the government every quarter. Anyone can open the PPF account with the post office or most of the major banks. PPF interest rate is reviewed every quarter, and its current interest rate is 7.1%.