People are no longer considered to be rich people only when it comes to investing. In fact, it has become very popular among Indians of all ages and classes. The reason for this is that people are becoming more mature when it comes to saving money. The Government of India has put in place various investment schemes to encourage good habits in people such as spending money in a sustainable manner. One of these schemes is Public Provident Fund (PPF). In a PPF scheme, you are given the opportunity to make long-term financial investments as little as Rs. 500 each year till the age of fifteen.
As A PPF can either be withdrawn with interest once it reaches its maturity period, which is 15 years from the date the deposit was made, or be extended for another 5 years as soon as it reaches its maturity period.
It will be possible for you not only to save money for yourself and your family, but you will also be able to take advantage of a tax exemption of Rs. 1.4 Lacs for doing so. It is the government’s policy to provide a deduction to the taxpayers for both the amount deposited and the interest earned on that amount under the Income Tax Act, 1961.
Rate of Interest on PPFs
Interest rates on PPF returns are compounded annually and are determined by the government every quarter based on the return of government securities. The PPF interest rate currently stands at 7.9% annually. It is important to note that since PPF returns are not based upon stock market performance, the interest rate will most likely not decrease much. The idea that the interest rate on PPF returns is not dependent on stock market performance is one of the reasons why the PPF is one of the best tax-saving and investment schemes in the country at the moment. With the help of PPF Calculator, you will be able to calculate how much interest you will be able to earn at the end of your PPF tenure.
What is PPF calculator?
It is a great online tool that allows you to calculate the maturity and interest rate of your PPF with ease, and it is easy to do. PPF calculator was created to prevent you from doing tedious math. With the help of a PPF calculator, you can easily calculate the interest rate that you will receive for investing in any PPF scheme. Using the PPF calculator, you will get detailed information about the maturity of your PPF, the interest that you will earn throughout the term of your PPF, and the amount of principal that you will receive at the end of the period. You can find a PPF calculator quickly if you simply search for it on Google.
Types of PPF Calculators
PPF Calculators come in seven different types, which each serve a different purpose.
- Calculator for Fixed Monthly Investments in PPF- With the help of this tool, you can calculate the monthly amount payable towards your PPF account. To get a detailed calculation of the amount you have to pay on a monthly basis, enter your account opening date, the financial year when your PPF account was opened, and the fixed monthly investment amount.
- Calculator for PPF Fixed Yearly Investments – The PPF Fixed Yearly Investment Calculator allows you to calculate how much money you will need to deposit into your PPF account on a yearly basis. Since interest rates on PPF returns change over time, it will be important to calculate how much you will need to deposit.
- Calculator for PPF Variable Yearly Investments – You can easily calculate the principal amount in your PPF account with the help of the Variable Yearly Investment Calculator. In order to calculate, you need to involve the pertinent information like a financial year and the amount you have deposited in the previous financial year.
- PPF Benefits Calculator – In order to understand the various notions of PPF benefits, this calculator can help you. Using your PPF details, you can get information about your tax-free income, your tax liability before and after you invested, your annual tax savings, and your total tax savings over the course of 15 years, as well as your tax-free income.
- PPF Available Loan Calculator – This calculator will allow you to calculate the loan amount you can avail by providing your current PPF account balance, which is the only information you must provide to be able to calculate it.
- Calculator for Available Withdrawals (Before/After Extensions) – After a certain point of time, a PPF contributor has the right to withdraw the balance in their PPF account. This calculator helps you to calculate your withdrawal amount before and after the extension. A withdrawal can be made after the seventh financial year.
- PPF Maturity Calculator – You can use this calculator to calculate when your PPF investment is due to mature. This will enable you to formulate a plan as to whether or not you wish to extend or not extend your PPF investment.