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PPF account interest rate calculation tax benefits

 PPF interest rate, PPF calculation & rules Public provident fund withdrawal tips. Open Online PPFAccount With the Below Document at Any Time.

PPF Account Eligibility Details

PPf means PUBLIC PROVIDENT FUND and is a long debt scheme of government of India on which regular interests paid. Any Individual (whether Salaried or Self-Employed or any other category) can invest in this scheme and can earn a handsome tax-free return on the same which is usually higher than the return offered by Banks on Fixed Deposits

Public Provident Fund Account can be opened post office any state bank of India any other some branches of nationalized banks

 For NRI

NRI’s are not allowed to subscribe. However, if someone opens an Account while he is a Resident of India but subsequently becomes an NRI, he shall be allowed to continue investing in his account Maximum and Minimum amount to be deposited in PPF. each year The Maximum amount that can be deposited in every year is Rs. 1500000 and the Minimum amount to be invested in PPF every year is Rs. 500.DEposit either 12 monthly installments or in lumpsum the option of the Account Holder

PPF in Post Office                                                                                

You can open a PPF account in any of the private and public sector banks along with all the post offices.  In this article, we would discuss on how you can get opened for yourself PPF in the post office and how you can run it conveniently.

Documents required for PPF in Post Office

There are very few documents required for opening.  Here is the list of documents you would need to open a PPF in Post Office.
Two latest passport size photographs
Proof of address
Proof of Identity
PAN Card
Deposit amount (minimum Rs 500).
As you can see there are only a few prerequisites for opening PPF in the post office.  All you need to do is walk up to any of your post offices in the locality and meet the concerned official.

The procedure  in Post Offices

Walk up to any of the post offices near your vicinity,
Meet the concerned official and fill up the requisite form for account opening.
You can also download the form from the internet,
Affix your Passport Photograph on the space provided on the form and cross sign it accordingly.
Attach the photocopy of the required documents along with the form and submit it to the post office executive along with your deposit money.
You can deposit a minimum of Rs 500 and Rs 70,000 as the maximum at the time of opening of the account.

Important Instructions

There is no provision for joint account in PPF. Only one person can open in his/her own name.
The account holder can, however, nominate others for the PPF investment. A maximum of four people can be nominated.
If the depositor of the account is an adult, a PPF account for a minor is also possible.
The maturity period is 15 years, however, the account holder if wishes to extend the term of the account can do so in a multiple of 5 years.
You can’t withdraw prematurely before the start of the 7th year of the account
Loan against PPF can be taken at the start of 4th year and beginning of the 7th year of the account

Interest:

The current rate of interest for PPF is 8.7% and the minimum locking term for the scheme is 15 years, which could be further extended in multiple of 5 years.

 

At Post Office or Bank:

To open the account via post office the customer needs to submit the required form with all necessary things. Then the starting deposit must open the account and banks as well as, another post office will act as an agent for the same government.

PPF Online payment & balance check:

Payment can be auto debited.  login with net banking clicks on ppf account to know the balance.

The document must have:

  • PAN card, Passport, driving license, Voters ID
  • Current photographs
  • Account opening for with nomination form
  • Some banks can require an additional document with no risk.

Therefore, you can simply go with the online to open account deposit the money with no risk and save a lot of time.

PPF Interest rate bank wise SBI

Current PPF Interest rate is 8.70% annum. minimum withdrawal lock is 15 years. Premature withdrawals are available from the 7th financial year. (April 1st to March 31st).

SBI PPF interest and Other banks Like ICICI, IDBI, HDFC, AXIS  would be same at 8.7%.

 

Tax benefits

  1. interest amount up to 1.5 lakh eligible under 80c
  2. interest earned & total maturity tax-free EEE Status.

PPF Interest calculator for 15 years

PPF  interest rate from 01.04.2016) is 8.10 %  (New year 2017 may change the big difference).

 

Interest rate: 8.1%
Age of scheme: 15 years
The minimum amount (per year): 500
Maximum amount (per year) : 1,50,000
Number of instalments1-12
One person one 1 account with any bank lock-in period: 15 years (after 6th year can withdraw some amount)

period lock: 15 years (after 6th year can withdraw some amount)
we can extend more 5 years after 15 years of maturity.
IT Section 80 C applicable up to 1.5 lakhs.No tax on an interest like Fixed Deposit.

PPF alternative scheme mutual fund’s ELSS scheme but it too risky and high return 15% interest rate. exempted from EEE wealth tax.

How to calculate the PPF Interest rate?

  1. Select your Age,
  2. Select PPF Subscription /payment monthly/quarterly/half-year or annual.
  3. Enter the Amount invested PPF every year. (maximum Amount 1,50,000).
  4. Select the PFF tenure 15 years to 50.
  5. Click on get Mature Amount.

Note: Interest rate Accumulated every year by Latest PPF interest rate.

PPF Maturity withdrawal process: Form no G used to withdraw to a bank account.

Check out SBI / ICICI PPF Calculator?

 

Categories: employment provident fund organisation india