Public Provident Fund Calculator
Do you want to calculate your PPF? Are you having a problem with calculation of your PPF? We have tried to solve all your queries with PPF calculator. This post shares a method of public provident fund calculation. There are multiple methods of calculating this provident fund. Public provident fund account is the best tax savings scheme for every India. But, the calculation is a bit tedious. Sometimes you may find a difference between your calculation and the value in your PPF or EPF passbook. Online PPF calculator may be misleading as the PPF interest rate keeps on changing after every quarter.
Among many governmental saving schemes, PPF is a popular scheme for long term investment. It offers financial security with attractive interest rate and a fair return on investments. The best thing is that the PPF is fully exempted from income tax. A person can invest money starting from Rs. 500 to Rs. 1,50,000 in a single financial year. Explore further how the PPF calculator works.
How to Calculate PPF Amount
To arrive at the correct PPF calculation, you need to know certain factors. There are many online tools available as PPF calculator. However, this method will clear the concept of calculation.
- First of all, remember that PPF amount adds interest on monthly basis.
- The interest is not added to the amount immediately at the end of every month.
- The monthly interest is added only once at the end of the year.
- Thus, if you deposit money after 5th of any month, you will lose interest for that month on that deposited amount.
- That is why the best time to invest in PPF is 1st to 5th of the month. For example, if you deposit a certain amount on 10th of the August, this specific amount will accrue interest only in the month of September and not August.
- Keep an eye on any updated with regard to the PPF interest rate. (The current rate will continue for 2017-18 at 8%).
You can refer to online PPF calculator provided by the websites of the leading banks as well other sites. But we recommend you verify the calculation using the above information.
PPF Calculation Method
Here is a simple formula for PPF calculation:
The final PPF amount in your account would be the amount deposited summed up with the interest amount for that month.
Interest is calculated as per the prevailing rate of interest as declared by the government.
Amount deposited x (1/12 x 8/100) = Interest earned
Interest earned + Amount deposited = Amount in PPF Account
(Considering the interest rate is 8%)
The monthly interest on a certain amount is accrued only if the amount is deposited before 5th of the month.
So, if you want to earn the highest interest, the best thing is to deposit amount to your PPF account from 1st April to 5th April.
Online PPF Calculator
We are sure the calculation method will help you to know the amount without the help of PPF calculator. If you are holding a PPF account, you should also know the PPF rules. By knowing these rules or rules of provident fund, you can avoid any chance of miscalculating it.
Know PPF Rules
- Amounts can be deposited in a lump-sum way or in 12 different installments.
- Nomination facility is present at the time of opening account.
- The PPF account is transferable from one post office to another post office.
- The maturity period of PPF account is 15 years but can be extended. It can be extended within one year of maturity for next 5 years and so on.
- Maturity value can be maintained without further deposits and without extensions.
- It is not allowed to close the public provident fund account before 15 years.
- If a minimum of Rs. 500 deposit is not made in a single financial year, the account will be deactivated.
- The loan can be availed only from the 3rd year onwards.
Before investing your money for 15 years, it is important to know all the aspects of this saving scheme. The PPF calculation is a simple process. But you need to take care of the current interest rate and any update in that. Also, check carefully the date of the deposit you have made. This will let you calculate your PPF appropriately otherwie ue PPF calculator. You can open public provident fund account at bank or post office. Visit us for more news on public provident fund calculation and interest rate of PPF. Feel free to share your queries related to PPF calculator.