PPF Calculation: How much will you earn in 18 years by investing Rs 5,000, Rs 7,000, and Rs 10,000 monthly in Post Office Public Provident Fund?

PPF stands for Public Provident Fund. It is a long-term investment and savings scheme offered by the government. One of the reasons why PPF is popular among investors is, it offers a combination of safety, guaranteed returns, and tax benefits. Investments in Public Provident Fund are tax-deductible under Section 80C of the Income Tax Act, and the interest earned is also exempt from income tax. On that note, let’s find out how much you will earn in 18 years by investing Rs 5K-10K monthly in the Post Office Public Provident Fund.

Also read: How can you get over Rs 1 lakh/month tax-free income from Public Provident Fund?

Introducing Post Office Public Provident Fund

The Public Provident Fund (PPF) at the post office is a savings scheme that allows you to save money for the long term. It’s a government-backed plan that offers tax benefits and guarantees returns to help secure your financial future.

Eligibility criteria for opening a PPF account

• Any individual, including those who are employed, self-employed, or pensioners, can open a PPF account.
• A guardian can open a PPF account on behalf of a minor or a person.
• Only one PPF account can be opened across the country, either in a post office or a bank.

What is minimum & maximum deposit amount in Post Office PPF?

1. The minimum deposit required in a financial year is Rs 500, while the maximum deposit allowed is Rs 1.50 lakh.
2. Combined Deposit Limit: The maximum limit of Rs 1.50 lakh applies to the combined deposits made in: Your own PPF account or a PPF account opened on behalf of a minor.

What is the maturity period of a PPF account?

The account matures after 15 financial years, excluding the financial year of account opening.

What is the next step after PPF matures?

When your PPF account matures, you have a few options:
1. Take the maturity amount: Fill out the account closure form, submit it with your passbook, and get your money.
2. Keep the money in the account: You can leave the maturity amount in the account and still earn interest. You can withdraw the money anytime or make one withdrawal per year.
3. Extend the account: Within one year of maturity, you can extend your PPF account for another 5 years by submitting an extension form at the post office.

How much can you withdraw from the PPF account?

Here are the rules regarding withdrawals from a PPF account:
You can make one withdrawal per financial year, but only after five years from the date of account opening, excluding the year of account opening.
The amount of withdrawal allowed is up to 50 per cent of the balance credited to the account at the end of the fourth preceding year or the end of the preceding year, whichever is lower.

Post office PPF calculation conditions

Investment amount: Rs 5,000, Rs 7,000, Rs 10,000
Annualised rate of return: 7.1 per cent
Investment period: 18 years

What will be the PPF corpus after 18 years with an investment of Rs 5,000 per month?

Annual investment: Rs 60,000 (5,000×12)
Your total investment amount in 18 years will be Rs 10,80,000. The estimated interest earned during this period will be Rs 11,25,878, and the estimated maturity amount will be Rs 22,05,878. 

What will be the PPF corpus after 18 years with an investment of Rs 7,000 per month?

Annual investment: Rs 84,000 (7,000×12)
Your total investment amount over 18 years will be Rs 15,12,000. The estimated interest earned during this period will be Rs 15,76,230, and the estimated maturity amount will be Rs 30,88,230.

What will be the PPF corpus after 18 years with an investment of Rs 10,000 per month?

Annual investment: Rs 1,20,000 (10,000×12)
Your total investment amount over 18 years will be Rs 21,60,000. The estimated interest earned during this period will be Rs 22,51,757, and the estimated maturity amount will be Rs 44,11,757.

DISCLAIMER: Not financial advice; invest at your own risk