New Delhi: The Public Provident Fund (PPF) remains highly popular among investors who wants to create fund for retirement. However, you can also use it to create funds for your child’s future. PPF is a long-term financial instrument with a maturity period of 15 years. Parents or guardians can open a PPF account on behalf of their children, or they can open it for self. Currently, an interest rate of 7.10 per cent is being offered to investors. Let’s calculate how much interest you will earn on an investment of Rs 10,000 in 15 years.
PPF Interest Rate
If an individual makes an investment of Rs 10,000 every month for 15 years, the depositor will be entitled to get a maturity amount of Rs 31,55,680. The amount has been calculated with the current interest rate of 7.10 per cent for 15 years. The total deposit made throughout the investment period sums up to 18,00,000 rupees.
Year
Deposit Amount
Balance Amount
Interest Amount
Year 1
₹ 120000
₹ 124615
₹4615
Year 2
₹ 240000
₹ 258078
₹18078
Year 3
₹ 360000
₹ 401017
₹41016
Year 4
₹ 480000
₹ 554104
₹74103
Year 5
₹ 600000
₹ 718060
₹118060
Year 6
₹ 720000
₹ 893657
₹173657
Year 7
₹ 840000
₹ 1081722
₹241722
Year 8
₹ 960000
₹ 1283139
₹323139
Year 9
₹ 1080000
₹ 1498857
₹418857
Year 10
₹ 1200000
₹ 1729891
₹529891
Year 11
₹ 1320000
₹ 1977328
₹657328
Year 12
₹ 1440000
₹ 2242333
₹802333
Year 13
₹ 1560000
₹ 2526154
₹966154
Year 14
₹ 1680000
₹ 2830126
₹1150126
Year 15
₹ 1800000
₹ 3155680
₹1355680
How much you can invest in PPF?
The PPF has a fixed lock-in period of 15 years, during which you can deposit between Rs 500 and Rs 1.50 lakh per financial year. You can make deposits can be made in lump-sum or in installments. Investors have the option to retain the maturity value in their PPF account without further deposits. The applicable PPF interest rate will continue to accrue, and withdrawals can be made at any time, with a maximum of one withdrawal permitted per financial year.
What happens if the PPF account holder dies?
Upon the death of the account holder, the PPF account ceases operation, with nominees or legal heirs unable to make further deposits. In the event of closure due to death, the interest accrued on the PPF account will be paid up until the end of the preceding month in which the closure occurs. This ensures that any accumulated interest is accounted for up until the account’s cessation following the account holder’s demise.
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PPF Interest calculation: PPF is a long-term financial instrument with a maturity period of 15 years. Parents or guardians can open a PPF account on behalf of their children, or they can open it for self. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
