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# PPF Calculator

PPF (Public Provident Fund) is a long-term investment option that provides a fixed rate of interest and returns on the amount invested. It offers a safe investment option to save taxes and earn guaranteed returns. A PPF calculator lets users calculate the maturity amount based on the sum invested.

### What Is PPF?

The purpose of the PPF, which was first implemented in India in 1968, was to mobilise small contributions for investment and return. It can also be referred to as an investment vehicle that enables one to accumulate retirement funds while reducing yearly taxes.

A PPF account should be opened by anyone looking for a secure investment alternative to reduce taxes and earn assured profits.

### Benefits Of PPF

PPF is one of the finest investing options for those with a limited tolerance for risk. PPF is a government-sponsored scheme and the investment is unrelated to the market. As a result, it provides guaranteed returns to meet people's needs for safe investments. PPF accounts diversify an investor's portfolio because their returns are fixed. They also provide advantages for tax savings.

### How To Calculate PPF

The standard formula to calculate PPF is given below with an example.

One can contribute a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. Contributions can only happen once a month.

For instance, if a person invests Rs 50,000 every year in PPF, s/he can build a corpus of Rs 13.56 lakh in 15 years. (this is calculated at the current interest rate of 7.1 per cent).

Investing the maximum amount of Rs 1.5 lakh every year in a PPF account would build a corpus of Rs 40.68 lakh in 15 years.

Opting for extensions, with or without contributions, can further increase the maturity amount.

### How To Use A PPF Calculator?

A PPF calculator helps users plan their financial goals by giving them an estimate of returns based on the amount invested and the duration. The calculator uses a 15-year tenure and the prevailing interest rate to compute the overall returns as a standard process.

### PPF Withdrawal Rule

One can entirely withdraw from a PPF account only upon maturity or after 15 years of running the account. After 15 years, an account holder can withdraw the full balance in the PPF account, including the interest earned, and the account can be terminated. However, if PPF holders need money for any emergency, the scheme permits partial withdrawals beginning in the seventh year or after the account has completed six years.

### PPF FAQs

1. Can I Withdraw Full PPF Amount After 15 Years?

An account holder can withdraw their PPF amount in full after 15 years.

2. Can I Transfer My PPF Account?

PPF accounts are transferable between authorised banks and post offices. The PPF account will be regarded as a continuous account in this scenario.

3. How Much Amount Will I Receive After 15 Years?

That would depend on how much money you have invested. For instance, if a person invests Rs 50,000 every year in PPF, s/he can build a corpus of Rs 13.56 lakh in 15 years. (this is calculated at the current interest rate of 7.1 percent).

4. Can I Withdraw PPF Amount Before 15 Years?

PPF has a maturity term of 15 years after which you can decide whether to remove the money from your account.

Partial withdrawals are allowed before the account matures - after the sixth fiscal year following account opening, but only in specific situations.

5. How To Open A PPF Account?

Find an application form at the neighbourhood post office or sub-post office. Complete the form, then send it with the necessary KYC (Know Your Customers) paperwork and a passport-sized photo for account opening.

A post office PPF account can be opened with a Rs 500 initial deposit.

6. Is PPF Amount Taxable?

Section 80C of the Income Tax Act of 1961 exempts up to Rs. 1.5 lakh deposits made to a PPF account from taxation in a fiscal year.

The second exemption relates to the interest derived from your PPF investments. So, the answer is no; PPF interest is not taxable.