PPF stands for Public Provident Fund. PPF is a saving scheme, and the government backs it. In India, people invest in PPF schemes and use them as their retirement fund, as it has a more extended lock-in period of about 15 years. It also saves your income tax as you get a deduction under Section 80C. Investing in PPF is a step forward for wealth management to accumulate your savings. There are various saving schemes available, but PPF investment is one of the best schemes as it guarantees significant return risk-free. Calculating the interest rates and the return from the PPF fund is generally a tough task. The Public Provident Fund calculator makes this task simple and easy.

 

PPF calculator

It is an easy-go financial tool that helps you to calculate the interest rates and the return of the PPF account. Making these calculations manually is a difficult task and can also lead to errors. So PPF calculator online can be used to do difficult calculations.

 

Features of Public Provident Fund

The features of PPF are as follows:

• The Public Provident Fund, or PPF, is a saving scheme that is backed by the government of India.
• At least Rs. 500 you need to deposit in each financial year in order to keep your PPF account active.
• The lock-in period for the PPF account is 15 years.
• The maximum amount that you can deposit in the account to earn the interest is Rs. 1,50,000.
• The PPF interest rate is paid by the government of India and is put down every quarter.
• The interest rate earned on the PPF is not taxable.
• The interest rate on PPF is evaluated on a monthly basis and is compounded yearly.
• Under the EEE category (that is, Exempt, exempt, exempt), the deposits, the interest rate, and the maturity amount all get an exemption from income tax. The public provident fund scheme falls under this EEE category.
• The public provident fund gives you the facility of partial withdrawal.
• This scheme also provides you with a loan facility.

 

Benefits of the PPF scheme

The benefits of investing in PPF are as follows:

• The PPF account interest rate is 7% or 8%, which is high than the interest rate that you get on your saving account or fixed deposits.
• You also get tax benefits from investing in the PPF scheme.
• The PPF investments are managed by the government of India, so it becomes a more secure choice of investment than other investment options like savings, FDs, etc.
• The PPF accounts are completely backed by the government, so it is safer than other investments like saving accounts and FDs.
• The amount in the PPF account is not attached to your liabilities in case of any insolvency. Hence, this investment works as a last resort to secure your future financially.
• PPF also provides a facility where a guardian of a minor or any unsound can open a PPF account on their behalf. Thus, it is a better choice to secure their future.

 

How is the PPF calculator useful to you?

This financial tool will help you to solve many of your doubts related to your PPF account. However, it is needed to follow certain specifications when you calculate the maturity amount after a specified time period. Those who already hold a PPF account might be aware that the interest rate of a PPF account keeps changing on a monthly basis, so the calculator helps to track the growth of your capital. Nowadays, the discovery of the PPF calculator online has made it easier to keep track of the changing interest rates of the PPF account. Many user-friendly PPF calculators are available; you may choose the best calculator for you.

 

The formula for calculating PPF

The formula that is used for calculating PPF is as below:

F = P[({(1+i)^n}-1)/i]

Variables in the formula are as follows:

I stands for Rate of Interest

F stands for Maturity of PPF

N stands for the Total Number of Years

P stands for Annual Installments

How to use the PPF calculator?

This is a user-friendly financial tool. In order to get the maximum out of this tool, it is important to understand the working of the PPF calculator. The user has to just enter the required data in the specific columns, and then the further work calculator has to do. The data that has to be entered in the PPF interest calculator are the total invested amount, tenure, the amount invested monthly or yearly, and the interest that you earn.

Once you enter the values in the specific fields, you will be shown the maturity amount within seconds.

It is to be noted that if you deposit the amount on 1st April, then the interest rate will be calculated according to the new financial year, and there are chances of the interest rate being affected due to inflation or deflation.

 

Advantages of Public Provident Fund Calculator

The advantages of using the PPF calculator online are as follows:

1. This tool will help to determine and get clarity about how much interest rate you will earn if you invest a certain amount.
2. With the guidance of this financial tool, you can save your hard-earned money on taxes.
3. It is usually difficult for individuals to decide about the maturity period of their investment. This is where the PPF interest rate calculator becomes helpful.
4. It also assists in deciding the total investment in a financial year.
5. In order to get an accurate result by using the PPF calculator, it is necessary to provide the calculator with the accurate investment amount and also the type of the deposit, whether fixed or variable.

Thus, the PPF scheme is the best option for making investments and being financially secure in the future. And the public provident fund calculator makes it easy and simple for you to keep track of the happenings of your PPF account.

Write and Win: Participate in Creative writing Contest & International Essay Contest and win fabulous prizes.