Public Provident Fund (PPF) is supported by the federal government and provides a fixed rate of interest of 7.1 percent. Offering tax-free investments as high as 1.5 lakh per calendar year PPF offers a desirable alternative for those with long-term goals such as retirement planning. PPF is very popular due to the fact that it provides assurance of returns as well as tax advantages. Let’s see what you could make in the next 18 years after making a monthly investment of Rs. 5,000- 10,000 a month into PPF. Post Office Public Provident Fund.
What is Post Office Public Provident Fund?
The Public Provident Fund (PPF) located at the post office is a savings plan which allows you to conserve funds for the future. It’s a plan supported by the government which offers tax advantages and assures returns that will help you secure your financial security.
Who are eligible to create PPF accounts? PPF account?
Every person, including individuals who are employed as self-employed, self-employed or pensioners who are pensioners, self-employed or employed can sign up for PPF accounts. PPF account.A guardian is able to set up an PPF account for a child or for a person.
One PPF account is able to be opened in the entire country, whether through a postoffice or in a bank.
What is the deposit minimum and maximum amount in the Post Office PPF?
1. The minimum amount of deposit that is required for one year is 500 rupees The maximum sum permitted in the year is 1.50 lakh.
2. Combination Deposit Limit: A maximum limit of 1.50 lakh is applicable to deposit made by combining the following accounts: your personal PPF account, or the PPF account that you opened by a minor.
How do I get an account for a PPF account? It could be at the post office, bank or both?
It is possible to open your PPF account through the post office or bank. Both accounts have the same guidelines and advantages, so you’re able to choose which that is most suitable for your needs.
What is the term used to describe the maturity of an account with a PPF account?
The account will mature within 15 years of financial transactions which excludes the year that the account was opened in.
What’s the next step when PPF is finished maturing?
If your PPF account is about to expire it gives you a number of alternatives:
1. The maturity amount is Complete the closing form of your account complete it, attach your passport, and then collect your cash.
2. The money should be kept in the account: You may keep the amount that matures in the account while earning the interest. The money can be withdrawn anytime, or withdraw it once every year.
3. The account can be extended: After one year from the date of expiration, you are able to extend the term of your PPF account by 5 years simply by submitting an extension application at the local post office.
What is the maximum amount you can take out of your PPF account?
Here are the regulations for the withdrawal process from PPF accounts: PPF account:
There is a limit of one withdrawal in a calendar year. However, it must be made within five years of the date of opening your account and not counting the year that accounts were opened.
The maximum amount that can be withdrawn is not more than 50 per percentage of the amount that is credited to the account by the close of the year preceding in its fourth quarter or at the close of the previous year which ever is less.
Conditions of calculation for PPF in the post office
The investment amount is the amount of Rs 5,000, Rs 7,700 and $10,000
Rate of Return Annualised: 7.1 per cent
Period of investment: 18 years
What would be PPF capital after the period of 18 years, with an investment of 5,000 rupees per month?
An annual investment of Rs. 60000 (5,000×12)
The amount of your investment for the next 18 years will be the amount of Rs 10,80,000. The expected interest rate earned over the period will be 11,25,878. The estimated final amount at maturity will be 22,05,878.
What is PPF the corpus at 18 years and an investment of 7,000 rupees per month?
Annual investment: 84,000 Rs (7,000×12)
Your investment total over the course of 18 years is 152,000 rupees. The expected interest rate earned over the period will be 13,51,054, and the maturity amount is Rs 30,88,230.
What would be PPF corpus in 18 years and an annual investment of Rs. 10,000 per month?
An annual investment of Rs. 120,000 (10,000×12)
The total amount you invest over the span of 18 years will be the sum of Rs 21,60,000. The anticipated interest you earn during the period is 22,51,757. The estimated maturity amount is Rs 44,11,757.
