# PPF Calculator ICICI : Check Returns & Maturity of ICICI Public Provident Fund

Public Provident Fund (PPF) is a Government-Backed Scheme launched by the National Savings Institute. The interest on PPF is announced every quarter by the Ministry of Finance. For the current quarter (September – December 2020), the interest on PPF is 7.1%. Interest and wealth accumulated on PPF can be estimated using PPF Calculator ICICI.

PPF Calculator ICICI

## PPF vs Mutual Funds

The minimum amount of investment is Rs 500 and maximum of Rs 1,50,000. Though PPF offers guaranteed returns, it isn't advised to invest entire amount in this. This investment comes with a 15-year lock-in period.

Instrument | Returns | Total Corpus | Annualised % |
---|---|---|---|

PPF | 7.1% | ||

ELSS Mutual Funds | 11.25% | ||

Tax Saving FD | 5.3% |

Here are some best alternatives for PPF investments ->

ELSS Calculator

Find out how much your tax-saving investments will grow if you invested in ELSS funds

FD Calculator

Find out by how much your money will grow if you save in an FD, given a particular interest rate.

RD Calculator

Find out by how much your money will grow if you save in a Recurring Deposit, given a particular interest rate.

TAX Calculator

Calculate your tax liability based on your income tax slab.

NPS Calculator

Find out how much your retirement savings will grow if you invest in the National Pension Scheme.

## Mutual Funds better than PPF

Investing in ELSS funds recommended by Scripbox would get you returns of 11.25% p.a

Here are the shortlisted funds by Scripbox

## What is PPF?

Public Provident Fund is one of the post office savings schemes. The government backs the PPF and was launched by the National Savings Institute. Therefore, returns from these are guaranteed. The interest rate on PPF for the current quarter is 7.1% (October – December). Interest payments for PPF investments are made on 31st March every year. However, the interest is computed monthly on the PPF balance between 5th and 30th of every month. PPF investments have a 15 years lockin period. Furthermore, one can choose to extend the scheme in blocks of 5 years.

Investors can take loans against PPF investments. They can take a loan between the third and fifth year. Applying for a loan is easy and can be done from the bank’s website. Partial withdrawals on PPF investment are subject to certain withdrawal rules.

PPF investment falls under the EEE (Exempt – Exempt – Exempt) category. In other words, the investments, interest, and redemptions are all tax exempted. Investments up to INR 1,50,000 per year get tax benefits under Section 80C of the Income Tax Act. The same can be claimed while filing income tax returns.

The interest on PPF accounts is also completely tax exempt. Furthermore, the PPF maturity amount at the end of 15 years is completely tax-free as well.

Therefore, PPF is a good investment option. The account also provides capital protection along with risk-free and guaranteed returns.

Following are some features of a PPF account:

**Tenure**

The minimum tenure is 15 years. However, investors have an option to extend the investment duration by a block of 5 years. Also, it doesn’t require any additional investments.

**Eligibility**

Indian citizens can invest in PPF. However, HUFs and NRIs are not eligible to open a PPF account.

**Number of Accounts**

Each person can have only one PPF account. However, in case someone wants to open another account, they can do it on behalf of a minor.

**Minimum and maximum investment amount**

The minimum investment amount to open a PPF account is INR 100. Furthermore, in a year, the minimum investment has to be at least INR 500. On the other hand, the maximum investment amount per year is INR 1,50,000. For investments above INR 1,50,000, the investor will not receive any interest.

**Deposit frequency**

The deposit frequency can be either once a year or a maximum of 12 installments in a year. Also, to keep the account active, at least one deposit per year is mandatory.

**Mode of deposit**

One can deposit their PPF investments though online, demand a draft, cheque, or cash.

**Risk**

The Government of India (GOI) backs the Public Provident Fund PPF. Hence, it is considered to be one of the safest investment options. PPF offers risk-free and guaranteed returns. Moreover, it offers capital protection. Therefore, the risk factor is minimal for PPF investments.

**Joint Account**

One cannot open a joint account for PPF. Each individual can have only one PPF account.

**Nomination**

Investors can nominate their nominee either at the time of account opening or subsequently.

**Loan**

Investors can get a loan against their PPF investments. However, the loan eligibility is between the third and the fifth year. Also, the loan amount cannot exceed 25% of the value of investments made at the end of the second financial year. Furthermore, investors can avail a second loan after the sixth financial year. However, to be able to get the second loan, the first loan has to be paid entirely.

## Interest on PPF

PPF interest for the September-December 2020 quarter is kept unchanged at 7.10%. PPF interest payments are made on the 31st of March every year. The interest rates are announced by The Ministry of Finance every quarter. Before March 2017, the announcements of PPF interest rates were made every year or as and when required. However, since April 2017, the interest payment announcement frequency changed to a quarterly basis.

PPF interest is calculated on the PPF account balance. The interest is calculated on the minimum balance in an investor’s account between the 5th and 30th of every month. Hence, if investors are depositing in PPF every month, it is advised that they do it before the 5th of that month to earn a higher interest.

Interest on PPF is exempt from taxation. PPF falls under the EEE category. Hence the investment, interest, and maturity amount are exempt from tax.

## What is ICICI PPF Calculator?

ICICI PPF calculator helps in estimating PPF returns. One can determine the potential returns of an ICICI PPF account by entering data inputs such as yearly investment amount and duration of the investment. On the basis of the input, the calculator computes the potential returns. It determines the wealth gained through PPF investments.

The ICICI PPF calculator automatically computes the maturity amount and also the wealth gained from the PPF investment.

**Input**

The PPF calculator requires the following inputs.

**Yearly Investment:**The amount an individual wishes to invest in a PPF account in a year.**Duration of Investment (in years):**It is the investment tenure. PPF account has a lockin period of 15 years and investors who wish to extend their investment can do so by a block period of five years.**Current Interest Rate (%):**Time to time, Scripbox updates its calculator with the current interest rates.

**Output**

With the given inputs, the PPF calculator determines the following values:

**Total Investment:**It is the sum of all the yearly investments until the end of the investment tenure.**Wealth Gained:**It is the total amount gained during the investment tenure.**Maturity Amount:**Maturity amount is the total amount one can expect from their PPF investments. In other words, it is the value that one can expect at the end of their investment tenure.

## How to use the ICICI PPF Calculator?

Scripbox's ICICI PPF calculator is available online and is free to use. One can determine potential PPF returns using this calculator. Firstly, one needs to visit the website to determine their potential returns from PPF investments.

Let us understand how to use Scripbox's ICICI PPF calculator with the help of an example.

Mr Krishna would like to determine his potential returns from PPF investments. The yearly investment amount he wishes to invest is INR 1,50,000 and for a tenure of 15 years. The current PPF interest rate is 7.1%.

The calculator estimates the following:

- Total Investment: INR 30,00,000
- Wealth gained: INR 36,58,288
- Maturity value: INR 66,58,288

Therefore, Mr Krishna’s potential return from PPF investment is INR 66,58,288 by the end of his investment tenure.

## Benefits of ICICI PPF Calculator?

Following are the benefits of ICICI PPF calculator.

**Estimates the wealth gained:**The calculator helps in estimating the wealth gained from an ICICI PPF account. It also estimates the maturity amount at the end of the PPF tenure.**Fast and accurate:**The calculator is quite fast in computing the results. Moreover, the calculator estimates the wealth gained accurately as per the inputs provided. However, the ICICI PPF calculator doesn't guarantee any return. It only estimates potential return from a PPF investment.**Helps in managing finances better:**By knowing how much can one earn from an investment in PPF, one can make more informed decisions with respect to investing.**Easy to use:**The calculator is a simple tool and quite easy to use. All one has to do is enter their investment amount per annum and the tenure of investment. The calculator estimates the total investment amount, wealth gained and maturity amount. Moreover, the calculator also suggests alternatives to PPF.

## The Formula for PPF Calculation

Potential returns from PPF investment can be estimated using the formula below.

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

Where,

A = Maturity amount

P = Investment amount

i = Interest rate on PPF

n = the tenure of investment

Let's understand this better with the help of an example. Ms Anu wants to invest in PPF for a tenure of 15 years. The rate of return from PPF is 7.1%, and she wants to invest a sum of INR 50,000 per annum.

Using the above formula, the maturity amount for Ms Anu would be.

A = 50,000 *[({(1+0.071) ^15}-1)/0.071]

A = INR 13,56,070

Below is a detailed PPF investment schedule of Ms Anu’s investment

Year | Opening Amount (INR) | Investment (INR) | Interest (INR) | Closing Amount (INR) |
---|---|---|---|---|

1 | 0 | 50000 | 3550 | 53550 |

2 | 53550 | 50000 | 7352 | 110902 |

3 | 110902.05 | 50000 | 11424 | 172326 |

4 | 172326.0956 | 50000 | 15785 | 238111 |

5 | 238111.2483 | 50000 | 20456 | 308567 |

6 | 308567.147 | 50000 | 25458 | 384025 |

7 | 384025.4144 | 50000 | 30816 | 464841 |

8 | 464841.2188 | 50000 | 36554 | 551395 |

9 | 551394.9454 | 50000 | 42699 | 644094 |

10 | 644093.9865 | 50000 | 49281 | 743375 |

11 | 743374.6595 | 50000 | 56330 | 849704 |

12 | 849704.2603 | 50000 | 63879 | 963583 |

13 | 963583.2628 | 50000 | 71964 | 1085548 |

14 | 1085547.674 | 50000 | 80624 | 1216172 |

15 | 1216171.559 | 50000 | 89898 | 1356070 |

## How to open a PPF account?

To open a PPF account, one can submit the documents required at a Post Office or an authorized bank. State Bank of India, Punjab National Bank, HDFC Bank, ICICI Bank and Axis Bank are few banks that accept PPF investments. Alternatively, an investor can invest in PPF through net banking of any of these banks. But suppose the investor chooses to invest through a post office. In that case, he/she will have to visit a post office branch to invest physically.

To invest in PPF, one has to be eligible. Below are the eligibility criteria:

- Indian Citizen
- NRIs and HUFs cannot invest in PPF.
- Only one account per investor is allowed. However, one can open a second account on behalf of a minor.
- All the necessary documents have to be submitted along with the application form and deposit amount.

To invest in PPF, the following are the documents required:

- PPF application form
- Address Proof (Passport, electricity bill, telephone bill, Aadhar Card, etc.)
- Identity Proof (PAN Card, Passport, Aadhar Card)
- Signature proof

Once the above documents are submitted, and the deposit amount is transferred, the account opening process is successful.

## Is there a premature withdrawal facility on PPF investment?

PPF investment has a tenure of 15 years. The scheme matures after this period. However, investors can partially withdraw their investments before maturity subject to few withdrawal rules.

- Premature PPF withdrawal is allowed only after completion of 5 years from the date of account opening.
- The PPF withdrawal amount is limited to lower of 50% of the balance at the end of 4th year or the preceding year. The same will be credited to the investor's savings account.

Premature closures of PPF account are allowed with a 1% penalty on the interest and only on the following conditions:

- The account has completed five years from the account opening date.
- The investor or their spouse or dependent is suffering from a life-threatening disease. The necessary documents for the same have to be submitted.
- Suppose the account holder is going for higher education and needs the money to pay for tuition. A proof has to be submitted for the same.
- When the account holder is changing their residency status.

PPF maturity period is three years, and the investor can choose from any of the three options.

- Opt for complete withdrawal and withdraw the entire amount.
- Extend the scheme without contributions. The investor will earn interest on the same till the account is closed.
- Extend the scheme with contributions. However, this is only possible in a block of 5 years. Also, there is no limit on the number of times the extension is opted for.

## Can I take a loan against PPF investment?

Yes, one can take a loan against their PPF investment. Following are the rules for taking a loan on PPF investment.

- Loan facility is available only between third and fifth year.
- Only 25% of the deposit amount at the end of the second year can be taken as a loan.
- The second loan can be taken at the end of 6th financial year, subject to full payment of the previous loan.
- One can avail the loan facility on the bank’s website.

## What are the other tax-saving investments under Section 80C?

There are multiple tax saving options that qualify under Section 80 C of the Income Tax Act other than PPF. One can claim a tax benefit up to INR 1,50,000 per year on any of the following schemes:

- Senior Citizens Savings Schemes (SCSS)
- National Savings Certificate (NSC)
- National Pension Scheme (NPS)
- Employee Provident Fund (EPF)
- ELSS - Equity Linked Savings Scheme (Tax saving funds)
- Sukanya Samriddhi Yojana
- Tax saving fixed deposit (FD)

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