PPF Interest Rate | PPF Interest Rate 2022-23

PPF Interest Rate - PPF Interest Rate 2022-23
PPF Interest Rate - PPF Interest Rate 2022-23

PPF Interest Rate

The Public Provident Fund is known as PPF. It was first introduced in 1968 with the intention of converting small savings into investments offering reasonable returns and additional advantages for tax reduction. It helps create a retirement fund. The current annual compound PPF interest rate is 7.1%. PPF is supported by the Indian government, carries very little risk, and promises risk-free returns.

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It qualifies for EEE status, which means that all of the invested money, interest that is earned, and maturity money that is received are tax-free.

PPF also has a minimum term of 15 years and an unlimited number of five-year extensions. Additionally, a PPF account can hold a minimum investment of 500 and a maximum of 1,50,000.

Additionally, it can be paid in a single payment or a maximum of 12 installments. A minimum of once per year must be deposited into a PPF account.

Important PPF Features

Tenure: It has a 15-year minimum term that can be increased in 5-year increments.

PPF Limit: PPF permits a minimum investment of Rs. 500 and a maximum investment of Rs. 15 lakhs per fiscal year.

Deposit frequency: Throughout the tenure, deposits must be made at least once a year.

Deposit mode: You can make deposits to a PPF account with cash, checks, demand draughts, and online fund transfers.

Nominee: Account holders have the option to name a nominee for their accounts either at account opening or at a later time.

Joint account: The account can be in the name of one individual only.

Risk: The government’s backing means that the scheme offers a guaranteed and risk-free return.

PPF Interest Rate 2022-23

Here is a chart showing the evolution of PPF account interest rates over the last ten years to the current PPF interest rate.

PPF Interest Rates April 2023
Financial YearTime PeriodPPF Interest Rate (per annum)
2022-2023April 2022 – March 20237.10%
2021-2022April 2021 – March 20227.10%
2020-2021April 2020 – March 20217.10%
2020-2021January 2020 – March 20207.90%
2019-2020October 2019 – December 20197.90%
2019-2020July 2019 – September 20197.90%
2019-2020April 2019 – June 20198.00%
2018-2019January 2019 – March 20198.00%
2018-2019October 2018 – December 20188.00%
2018-2019July 2018 – September 20188.00%
2018-2019April 2018 – June 20187.60%
2017-2018January 2018 – March 20187.60%
2017-2018October 2017 – December 20177.80%
2017-2018July 2017 – September 20177.80%
2017-2018April 2017 – June 20177.90%
2015-2016April 2015 – March 20168.70%
2014-2015April 2014 – March 20158.70%
2013-2014April 2013 – March 20148.70%
2012-2013April 2012 – March 20138.80%
2011-2012April 2011 – November 20118.00%
2011-2012December 2011 – March 20128.60%
2010-2011April 2010 – March 20118.00%
2009-2010April 2009 – March 20108.00%
2008-2009April 2008 – March 20098.00%
2007-2008April 2007 – March 20088.00%
2006-2007April 2006 – March 20078.00%
2005-2006April 2005 – March 20068.00%
2004-2005April 2004 – March 20058.00%
Opening a PPF account

Creating a PPF account is simple. All that is required is the submission of an application form along with documentation of KYC, address, identity, and signature.

You can open a PPF account at the Post Office or any other nationalised bank. A few private banks are also permitted to assist with PPF account opening. PPF investments is locked in for 15 years.

After completing six years, there is an option to withdraw money beginning in the seventh year. The amount is available for withdrawal once per year.

Minimum tenture

PPF has a 15-year minimum term that can be increased indefinitely in 5-year increments. Additionally, the minimum and maximum investments in PPF accounts are 500 and 1,50,000 rupees, respectively.

Investments may be made in a single payment or up to 12 installments. PPF accounts require deposits to be made at least once per year for 15 years.

How the PPF Calculator Works

The mathematical formula used by a PPF calculator to determine returns and interest earned on an investment. Their use is very simple. The majority of calculators have a simple user interface.

Here is a brief, step-by-step tutorial on how to use a PPF interest calculator if you are new to using online calculators:

1: Visit the website of your choice for an online PPF calculator.

2: Include your initial investment amount and interest rate in the list of requested information.

3: Within a few seconds, the total maturity amount will be visible on the screen.

It should be noted that if a deposit is made on April 1, the financial year will be used to determine how much interest is earned.

How is the PPF interest rate calculated?

PPF interest is compounded annually.

The formula for this is F=P[({(1+i)^n}-1)/i]

The explanation of the formula is:

F = Maturity Proceeds of the PPF

P = Annual Installments

n = Number of Years

i = rate of interest/100

How Can the PPF Calculator Be Useful?

Using online calculators can give you a clear understanding of the various investment options if you are new to investing. In the case of PPF, using an online PPF calculator can be a very beneficial investment option if you are new to investing.

Also see that exactly how your PPF investment is growing and how much interest you will eventually earn. You can determine how much you should invest annually or monthly using a PPF calculator to reach your desired corpus.

You can use a PPF calculator without installing any additional software multiple times for free.

The possibility of calculation errors is eliminated because this tool is automated. The majority of PPF calculators display the results graphically, making the information simple to comprehend for all users.

PPF Investment Schedule

Let’s use the PPF investment schedule as an example to help us better understand the overall concept. Consider an investor who makes annual investments of Rs. 1.1 lakh, takes out a PPF loan, and then withdraws the maximum amount allowed.

It is assumed that the interest rate will be 7.10%. The table below explains compounding, the opening balance, the impact of loans and withdrawals on PPF accounts, as well as the maturity value.

YearsOpening BalanceAmount DepositedInterest EarnedClosing Balance
101,10,00078101,17,810
21,18,6901,10,00016236.992,44,927
32,46,7571,10,00025329.7473,82,087
43,84,9411,10,00035140.8115,30,082
55,34,0411,10,00045726.9116,89,768
66,94,9201,10,00057149.328,62,069
78,68,5091,10,00069474.13910,47,983
810,55,8111,10,00082772.58112,48,584
912,57,9101,10,00097121.6114,65,032
1014,75,9751,10,000112604.22516,98,579
1117,11,2671,10,000129309.95719,50,577
1219,65,1471,10,000147335.43722,22,482
1322,39,0841,10,000166784.96425,15,869
1425,34,6621,10,000187771.00228,32,433
1528,53,5901,10,000210414.8931,74,005

Advantages of Using the PPF Calculator

A PPF account calculator is a straightforward and user-friendly online tool. For a given amount invested and investment period, a PPF calculator estimates the interest earned and the maturity value.

By visiting our website and entering the investment amount and time period, an investor can use the PPF calculator. The total corpus created at the conclusion of the investment period will be shown by the PPF maturity calculator.

Knowing the anticipated maturity amount in advance is crucial today. This aids a potential investor in selecting the PPF alternative that best suits his or her financial objectives.

The advantages of online PPF account calculator

An investor can estimate how much interest will be earned on a certain amount of principal by using an online PPF interest calculator.

It aids an investor in determining the investment horizon, or the length of time the investment should be held before it achieves the investment objective.

online PPF maturity calculator offers the investment schedule in advance, which led in planning for annual investment amount, loan that may be taken out, and amount that may be withdrawn.

Which banks provide PPF accounts?

Many public banks, private banks, post offices are offer PPF accounts, with online and offline both are available. The PPF account option is offered by the following banks.

BankOnline facility availableType of bank
State Bank of IndiaYesPublic Sector
ICICI BankYesPrivate Sector
HDFC BankYesPrivate Sector
Central Bank of IndiaYesPublic Sector
Bank of India (BOI)YesPublic Sector
Union Bank of IndiaNoPublic Sector
Bank of MaharashtraNoPublic Sector
IDBIYesPublic Sector
Bank of Baroda (BOB)NoPublic Sector
Vijaya BankNoPublic Sector
Allahabad BankYesPublic Sector
Oriental Bank of Commerce(OBC)NoPublic Sector
Canara BankYesPublic Sector
Corporation BankNoPublic Sector
Dena BankNoPublic Sector
Indian BankNoPublic Sector
Axis BankYesPrivate Sector
Indian Overseas Bank (IOB)NoPublic Sector
Punjab National Bank (PNB)NoPublic Sector
United Bank of IndiaNoPublic Sector
Syndicate BankNoPublic Sector
Andhra BankNoPublic Sector
UCO BankNoPublic Sector

ELSS Vs PPF

Government guarantees cover PPF returns. PPF offered 12% annual returns when it first came out. PPF returns are currently 7.1%. Even with guaranteed returns, relying solely on PPF as a source of investment income is risky because inflation will eat away at the returns.

PPF may be the best choice for investors who are risk averse and seeking tax savings. But there are undoubtedly other options to consider for risk-takers. The most effective of them is the ELSS fund, a tax-saving investment choice.

There are no guaranteed returns from ELSS funds because their returns are market-linked. However, historically, average ELSS funds have produced positive long-term returns of around 14%, while the top ones have contributed 20%! If invested in ELSS for 7–10 years, one can anticipate returns of 12–14%.

What are alternatives of PPF?

Among the many tax-saving investments, PPF is a common choice. Before choosing an investment, an investor must consider the PPF scheme’s alternatives.

This choice must be based on what is best for his or her financial objectives, which may be either long-term, such as 15 years, or short-term, such as 5 years, for a specified lock-in period and expected returns.

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