{"id":9648,"date":"2022-08-02T15:31:24","date_gmt":"2022-08-02T10:01:24","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=9648"},"modified":"2022-08-24T13:46:38","modified_gmt":"2022-08-24T08:16:38","slug":"ppf-interest-rate-how-to-calculate-returns-ppf-calculator","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/","title":{"rendered":"PPF Interest Rate: How To Calculate Returns, PPF Calculator, Tax Benefits"},"content":{"rendered":"\n<p>PPF <a href=\"https:\/\/www.tickertape.in\/blog\/flat-interest-rate-vs-reducing-balance-interest-rate\/\">interest rate<\/a> is relatively higher than a <a href=\"https:\/\/www.tickertape.in\/blog\/debt-funds-vs-fixed-deposits\/\">fixed deposit<\/a> and many other small savings schemes. Let us look at what is a PPF, the PPF interest rate, how to calculate returns on your investment, and how the maturity proceeds are taxed.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-PPF\" title=\"What is PPF?\">What is PPF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Features-of-Public-Provident-Fund\" title=\"Features of Public Provident Fund\">Features of Public Provident Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#PPF-interest-rate\" title=\"PPF interest rate\">PPF interest rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#How-and-when-is-the-PPF-interest-calculated\" title=\"How and when is the PPF interest calculated?\">How and when is the PPF interest calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-the-best-time-to-invest-in-a-PPF-account-to-maximise-your-returns\" title=\"What is the best time to invest in a PPF account to maximise your returns?\">What is the best time to invest in a PPF account to maximise your returns?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#How-often-is-PPF-interest-compounded\" title=\"How often is PPF interest compounded?\">How often is PPF interest compounded?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Formula-to-calculate-interest-on-Public-Provident-Fund\" title=\"Formula to calculate interest on Public Provident Fund\">Formula to calculate interest on Public Provident Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#PPF-calculator\" title=\"PPF calculator\">PPF calculator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#PPF-FAQs\" title=\"PPF FAQs\">PPF FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-a-PPF-account\" title=\"What is a PPF account?\">What is a PPF account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Why-invest-in-PPF\" title=\"Why invest in PPF?\">Why invest in PPF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#How-to-open-a-PPF-account\" title=\"How to open a PPF account?\">How to open a PPF account?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-the-minimum-initial-deposit\" title=\"What is the minimum initial deposit?\">What is the minimum initial deposit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-the-PPF-interest-rate\" title=\"What is the PPF interest rate?\">What is the PPF interest rate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-the-PPF-interest-rate-for-2022\" title=\"What is the PPF interest rate for 2022?\">What is the PPF interest rate for 2022?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#When-is-the-interest-on-PPF-calculated\" title=\"When is the interest on PPF calculated?\">When is the interest on PPF calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Will-the-PPF-interest-rate-increase-in-future\" title=\"Will the PPF interest rate increase in future?\">Will the PPF interest rate increase in future?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-the-minimum-lock-in-period-for-PPF\" title=\"What is the minimum lock-in period for PPF?\">What is the minimum lock-in period for PPF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#How-much-will-my-maturity-proceeds-from-PPF-be-after-15-yrs\" title=\"How much will my maturity proceeds from PPF be after 15 yrs?\">How much will my maturity proceeds from PPF be after 15 yrs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Can-I-make-premature-withdrawals-from-PPF\" title=\"Can I make premature withdrawals from PPF?\">Can I make premature withdrawals from PPF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Can-I-avail-a-loan-against-a-PPF\" title=\"Can I avail a loan against a PPF?\">Can I avail a loan against a PPF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-is-the-PPF-loan-interest-rate\" title=\"What is the PPF loan interest rate?\">What is the PPF loan interest rate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Does-a-PPF-account-offer-tax-benefits\" title=\"Does a PPF account offer tax benefits?\">Does a PPF account offer tax benefits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#What-happens-if-I-miss-the-PPF-contribution-for-a-year\" title=\"What happens if I miss the PPF contribution for a year?\">What happens if I miss the PPF contribution for a year?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.tickertape.in\/blog\/ppf-interest-rate-how-to-calculate-returns-ppf-calculator\/#Can-I-open-more-than-one-PPF-account\" title=\"Can I open more than one PPF account?\">Can I open more than one PPF account?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-PPF\"><\/span><strong>What is PPF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>PPF&#8217;s full form is Public Provident Fund. It is a government-backed saving scheme that helps individuals create long-term wealth by investing small amounts regularly. The scheme offers you the safety of capital along with attractive, assured returns.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features-of-Public-Provident-Fund\"><\/span><strong>Features of <meta charset=\"utf-8\">Public Provident Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Tenure: <\/strong>A PPF account has a long-term tenure of 15 yrs. However, you can extend it by one or more blocks of 5 yrs. The benefit? You continue to earn interest on your investment if you request an extension within a year before the account&#8217;s maturity.<\/li><li><strong>Investment amount:<\/strong> While the minimum deposit requirement in a financial year is Rs. 500, the maximum is Rs. 1.5 lakh. You can either deposit your investments in instalments or a lump sum.<\/li><li><strong>Interest rate: <\/strong>The government revises the PPF account interest rate every quarter. The current PPF interest rate (for July to September of FY 2022-23) is 7.1% p.a.<\/li><li><strong>Tax benefits:<\/strong> PPF enjoys a EEE (exempt-exempt-exempt) tax status; it is tax-free at every stage of investment &#8211; deposit, interest, and maturity proceeds.<\/li><li><strong>Premature withdrawals:<\/strong> Premature withdrawals from a PPF account are allowed after the fifth year, subject to conditions.<\/li><li><strong>Loan against a PPF: <\/strong>You can apply for a loan against a PPF in the third fiscal after the financial year of opening the account.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PPF-interest-rate\"><\/span><strong>PPF interest rate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government revises the PPF interest rate every quarter. The rate of interest is relatively higher than that of a fixed deposit. The <a href=\"https:\/\/www.tickertape.in\/blog\/ppf-vs-mutual-fund\/\">PPF<\/a> account interest rate for the current quarter (July to September) of FY 2022-23 is 7.1% p.a.<\/p>\n\n\n\n<p><strong>Historic PPF interest rates<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Financial year<\/strong><\/td><td><strong>Quarter<\/strong><\/td><td><strong>PPF interest rate (p.a.)<\/strong><\/td><\/tr><tr><td>2022-2023<\/td><td>April &#8211; June 2022<\/td><td>7.1%<\/td><\/tr><tr><td>2021-2022<\/td><td>January &#8211; March 2022<\/td><td>7.1%<\/td><\/tr><tr><td>2021-2022<\/td><td>October &#8211; December 2021<\/td><td>7.1%<\/td><\/tr><tr><td>2021-2022<\/td><td>July &#8211; September 2021<\/td><td>7.1%<\/td><\/tr><tr><td>2021-2022<\/td><td>April &#8211; June 2021<\/td><td>7.1%<\/td><\/tr><tr><td>2020-2021<\/td><td>January &#8211; March 2021<\/td><td>7.1%<\/td><\/tr><tr><td>2020-2021<\/td><td>October &#8211; December 2020<\/td><td>7.1%<\/td><\/tr><tr><td>2020-2021<\/td><td>July <meta charset=\"utf-8\">&#8211; September 2020<\/td><td>7.1%<\/td><\/tr><tr><td>2020-2021<\/td><td>April <meta charset=\"utf-8\">&#8211; June 2020<\/td><td>7.1%<\/td><\/tr><tr><td>2020-2021<\/td><td>January <meta charset=\"utf-8\">&#8211; March 2020<\/td><td>7.9%<\/td><\/tr><tr><td>2019-2020<\/td><td>October <meta charset=\"utf-8\">&#8211; December 2019<\/td><td>7.9%<\/td><\/tr><tr><td>2019-2020<\/td><td>July <meta charset=\"utf-8\">&#8211; September 2019<\/td><td>7.9%<\/td><\/tr><tr><td>2019-2020<\/td><td>April <meta charset=\"utf-8\">&#8211; June 2019<\/td><td>8.0%<\/td><\/tr><tr><td>2018-2019<\/td><td>January <meta charset=\"utf-8\">&#8211; March 2019<\/td><td>8.0%<\/td><\/tr><tr><td>2018-2019<\/td><td>October <meta charset=\"utf-8\">&#8211; December 2018<\/td><td>8.0%<\/td><\/tr><tr><td>2018-2019<\/td><td>July <strong><meta charset=\"utf-8\"><\/strong>&#8211; September 2018<\/td><td>8.0%<\/td><\/tr><tr><td>2018-2019<\/td><td>April <meta charset=\"utf-8\">&#8211; June 2018<\/td><td>7.6%<\/td><\/tr><tr><td>2017-2018<\/td><td>January <meta charset=\"utf-8\">&#8211; March 2018<\/td><td>7.6%<\/td><\/tr><tr><td>2017-2018<\/td><td>October <meta charset=\"utf-8\">&#8211; December 2017<\/td><td>7.8%<\/td><\/tr><tr><td>2017-2018<\/td><td>July <meta charset=\"utf-8\">&#8211; September 2017<\/td><td>7.8%<\/td><\/tr><tr><td>2017-2018<\/td><td>April <meta charset=\"utf-8\">&#8211; June 2017<\/td><td>7.9%<\/td><\/tr><tr><td>2015-2016<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2016<\/td><td>8.70%<\/td><\/tr><tr><td>2014-2015<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2015<\/td><td>8.70%<\/td><\/tr><tr><td>2013-2014<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2014<\/td><td>8.70%<\/td><\/tr><tr><td>2012-2013<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2013<\/td><td>8.80%<\/td><\/tr><tr><td>2011-2012<\/td><td>April <meta charset=\"utf-8\">&#8211; November 2011<\/td><td>8.0%<\/td><\/tr><tr><td>2011-2012<\/td><td>December <meta charset=\"utf-8\">&#8211; March 2012<\/td><td>8.60%<\/td><\/tr><tr><td>2010-2011<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2011<\/td><td>8.0%<\/td><\/tr><tr><td>2009-2010<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2010<\/td><td>8.0%<\/td><\/tr><tr><td>2008-2009<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2009<\/td><td>8.0%<\/td><\/tr><tr><td>2007-2008<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2008<\/td><td>8.0%<\/td><\/tr><tr><td>2006-2007<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2007<\/td><td>8.0%<\/td><\/tr><tr><td>2005-2006<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2006<\/td><td>8.0%<\/td><\/tr><tr><td>2004-2005<\/td><td>April <meta charset=\"utf-8\">&#8211; March 2005<\/td><td>8.0%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-and-when-is-the-PPF-interest-calculated\"><\/span><strong>How and when is the PPF interest calculated?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Interest on a PPF is calculated on the lowest balance in the account between the fifth and the last day of the month. If you deposit before the fifth day of each month, interest for that month is calculated on that amount. If you deposit the sum after the fifth, the interest is calculated on the previous <a href=\"https:\/\/www.tickertape.in\/blog\/a-guide-on-how-to-check-ppf-balance\/\">balance of the PPF account<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-the-best-time-to-invest-in-a-PPF-account-to-maximise-your-returns\"><\/span><strong>What is the best time to invest in a PPF account to maximise your returns?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Based on the above information, the chances of maximising your returns are higher when you make your monthly PPF investment before the fifth day. However, the difference is marginal &#8211; only a few hundred rupees. In case you want to make a lump sum investment for the entire financial year, consider investing before the 5th of April.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-often-is-PPF-interest-compounded\"><\/span><strong>How often is PPF interest compounded?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Interest on a Public Provident Fund account is compounded annually. It is calculated monthly and credited at the year-end.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Formula-to-calculate-interest-on-Public-Provident-Fund\"><\/span><strong>Formula to calculate interest on Public Provident Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A = P [({(1+i) ^n}-1)\/i]<\/p>\n\n\n\n<p>where,<\/p>\n\n\n\n<p>A = maturity amount<\/p>\n\n\n\n<p>P = the principal amount<\/p>\n\n\n\n<p>I = the expected interest rate<\/p>\n\n\n\n<p>N = the tenure for which the amount is invested<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PPF-calculator\"><\/span><strong>PPF calculator<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Since calculating the expected PPF returns can be cumbersome, you can use the PPF calculator online for ease and convenience. All you have to do is launch an online PPF calculator and enter the deposit amount and tenure of investment. The calculator will return the estimated maturity proceeds you can expect to receive at the end of the tenure.<\/p>\n\n\n\n<p>Note that the actual corpus may differ from the estimated figure as the PPF account interest rate is subject to quarterly revision. Nonetheless, knowing an approximate maturity amount can help you plan your long-term finances and make informed decisions to achieve your goals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PPF-FAQs\"><\/span>PPF <strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1659433366243\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-a-PPF-account\"><\/span><strong>What is a PPF account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A Public Provident Fund (PPF) Account is a small savings scheme run by the government that offers stable and guaranteed returns, a long-term wealth creation opportunity and attractive tax benefits to eligible individuals. Since it helps you create a sizable corpus at the end of the lengthy tenure, you can use the proceeds to meet several big-ticket financial goals, including children\u2019s higher studies, wedding expenses, medical emergencies, and so on.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433373216\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why-invest-in-PPF\"><\/span><strong>Why invest in PPF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Along with being a long-term wealth-generating scheme, PPF can be an excellent way to diversify your investment portfolio. Due to the scheme&#8217;s assured returns, it can be a good option for risk-averse investors without a high-risk tolerance. What\u2019s more, Public Provident Fund is also a tax-efficient investment, enjoying the EEE status.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433381406\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How-to-open-a-PPF-account\"><\/span><strong>How to open a PPF account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can open a PPF account by either visiting the nearest India Post branch or an authorised bank. You must submit an application form, furnish the required documents and your passport size photos, and adhere to the KYC guidelines.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433396147\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-minimum-initial-deposit\"><\/span><strong>What is the minimum initial deposit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can open a PPF account by making an initial deposit of as low as Rs. 100. After this, you are required to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> a minimum amount of Rs. 500 and a maximum of Rs. 1.5 lakh per fiscal.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433404351\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-PPF-interest-rate\"><\/span><strong>What is the PPF interest rate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It is the rate at which your PPF account earns interest. The government determines the rate.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433412186\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-PPF-interest-rate-for-2022\"><\/span><strong>What is the PPF interest rate for 2022?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The interest rate on PPF changes every quarter. The latest PPF interest rate is 7.1% for Q2 FY 2023.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433421037\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"When-is-the-interest-on-PPF-calculated\"><\/span><strong>When is the interest on PPF calculated?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>This entirely depends on your investment amount and the PPF interest rate. You can use a PPF calculator to calculate the approximate returns.<\/p>\n<p>The interest on PPF is calculated on the account balance on the fifth of every month. Ergo, making your deposit before the fifth of every month will help you earn the maximum benefit.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433443602\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Will-the-PPF-interest-rate-increase-in-future\"><\/span><strong>Will the PPF interest rate increase in future?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It depends on various factors, such as the government bond yield rate. The interest rate is not predetermined; there is no definite answer to whether the PPF interest rate will increase in the future.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433455219\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-minimum-lock-in-period-for-PPF\"><\/span><strong>What is the minimum lock-in period for PPF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>PPF has a tenure of 15 yrs. However, this can be extended in blocks of 5 yrs.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433467309\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How-much-will-my-maturity-proceeds-from-PPF-be-after-15-yrs\"><\/span><strong>How much will my maturity proceeds from PPF be after 15 yrs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>This entirely depends on your investment amount and the PPF interest rate. You can use a PPF calculator to calculate the approximate returns.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433499367\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-make-premature-withdrawals-from-PPF\"><\/span><strong>Can I make premature withdrawals from PPF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. You are allowed to make a premature withdrawal from your Public Provident Fund account after the fifth year, subject to conditions.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433530218\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-avail-a-loan-against-a-PPF\"><\/span><strong>Can I avail a loan against a PPF?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. You are allowed to avail a loan against a PPF in the third fiscal after the financial year of opening the account. The loan amount is limited to only 25% of the investment made at the end of the second fiscal preceding the year of applying for the loan. You can apply for a second loan on your PPF account if you have cleared your first loan.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433539219\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-PPF-loan-interest-rate\"><\/span><strong>What is the PPF loan interest rate?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The interest on the loan against PPF is 2% more than the interest you earn on the PPF account balance. Once the PPF loan interest rate is set, it will not change throughout the tenure of the loan.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433549614\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Does-a-PPF-account-offer-tax-benefits\"><\/span><strong>Does a PPF account offer tax benefits?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. PPF is considered to be extremely tax-friendly as it has an EEE status. This means it is tax-free at every stage of investment &#8211; deposit, interest, and maturity proceeds. You can claim a tax deduction of up to Rs. 1.5 lakh for the deposit made under Section 80C.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433570196\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-happens-if-I-miss-the-PPF-contribution-for-a-year\"><\/span><strong>What happens if I miss the PPF contribution for a year?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If you fail to contribute to your PPF account for a year, it will become dormant. To make it active, you are required to pay a minimum of Rs. 500 and a penalty of Rs. 50 for each year of missed contribution.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659433582448\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-open-more-than-one-PPF-account\"><\/span><strong>Can I open more than one PPF account?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No. Each individual can only open one PPF account. However, you are allowed to open a PPF account in the name of your minor child.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>PPF interest rate is relatively higher than a fixed deposit and many other small savings schemes. Let us look at what is a PPF, the PPF interest rate, how to calculate returns on your investment, and how the maturity proceeds are taxed. What is PPF? PPF&#8217;s full form is Public Provident Fund. It is a<\/p>\n","protected":false},"author":27,"featured_media":9655,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1739],"tags":[198,1720],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/08\/TT-14-July-PPF-interest-rate-BB-scaled.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9648"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=9648"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9648\/revisions"}],"predecessor-version":[{"id":9658,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9648\/revisions\/9658"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/9655"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=9648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=9648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=9648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}