PPF Intrest Rate 2019
| Quarter | Q4, | Q3, | Q2 | Q1 |
| Interest Rate | 8.0% | 8.0% | 7.6% | 7.6% |
PPF Account For Minor?
Legal Age proof required (Birth Certificate)
This account opened parents/ guardian on behalf of Children.
In the case of parents died then Grandparents can open an account in the name of Minor.
How To open PPF Account at Post Ofice / bank?
Offline: Visit nearest Post office/bank. Submit KYC Along with Minimum payment to Open an Account.
Online: Some banks Like ICICI, HDFC have the option to Open PPF online with Netbanking they have already your KYC.
For Opening at SBI Online >> Login to Netbanking >> Click On other Service Upper Right navigation >> Open PPF Account >>Select Desired branch to Open.
You have to download PPF Application visit the SBI Branch to open PPF with SBI.
Tax Benefits of Provident Fund Account (EEE Status)
- Unlike Insurance Policies, FD, Total Withdrawal Amount is Fully Tax-free.
- When Compared to ELSS (10% LTCG Greater than 1 lakh) There is No capital Gain Tax.
- You can deduct up to 1.5 lakh under section 80C toward PPF payment/contribution.
- There is No tax on Interest earned PPF and Total withdrawal Amount.
PPF Account Transfer & Re-activation facility
You can transfer PPF balance / Account. One Post Office to another post office if changed your location.
The same thing Applies to bank too.
In case of you discontinuing PPF for years. you can reactivate by paying Penalty Fees 50 Rupees for a year.
and Minimum PPF Contribution 500.
Ex: If Stopped PPF for 5 years. If Yiu wants to reactivate PPF.
Then you have to pay penalties 5*50=250
Minimum Contribution amount 500*5=2500
Total: 2500+250= 2750;
Withdrawal & Loan facility
Partial withdrawal up to 50% Available after 7 years of contribution.
Loan Facility Available from 3rd -6th Year of PPF Contribution.
IS PPF Calculated on a Monthly Basis or yearly?
According to PPF rules, the interest is calculated on a monthly basis but it is credited at the end of the financial year on March 31.
PPF Maturity calculation
The Interest rate varies Every year even 3months once slightly. So we have assumed a fixed Intrest rate before calculating the PPF Returns.
Ex:
Contribution: 1,50,000 (12,500)
Term: 15 Years
Interest rate: 8%
Compound Interval: monthly
(interest compounded monthly – added at the end of each month)
| Year | Year Deposits | Year Interest | Total Deposits | Total Interest | Balance |
| 1 | ₹150,000.00 | ₹6,661.57 | ₹150,000.00 | ₹6,661.57 | ₹156,661.57 |
| 2 | ₹150,000.00 | ₹19,664.40 | ₹300,000.00 | ₹26,325.97 | ₹326,325.97 |
| 3 | ₹150,000.00 | ₹33,746.46 | ₹450,000.00 | ₹60,072.43 | ₹510,072.43 |
| 4 | ₹150,000.00 | ₹48,997.33 | ₹600,000.00 | ₹109,069.76 | ₹709,069.76 |
| 5 | ₹150,000.00 | ₹65,514.01 | ₹750,000.00 | ₹174,583.77 | ₹924,583.77 |
| 6 | ₹150,000.00 | ₹83,401.57 | ₹900,000.00 | ₹257,985.34 | ₹1,157,985.34 |
| 7 | ₹150,000.00 | ₹102,773.78 | ₹1,050,000.00 | ₹360,759.12 | ₹1,410,759.12 |
| 8 | ₹150,000.00 | ₹123,753.88 | ₹1,200,000.00 | ₹484,513.00 | ₹1,684,513.00 |
| 9 | ₹150,000.00 | ₹146,475.32 | ₹1,350,000.00 | ₹630,988.32 | ₹1,980,988.32 |
| 10 | ₹150,000.00 | ₹171,082.62 | ₹1,500,000.00 | ₹802,070.94 | ₹2,302,070.94 |
| 11 | ₹150,000.00 | ₹197,732.32 | ₹1,650,000.00 | ₹999,803.26 | ₹2,649,803.26 |
| 12 | ₹150,000.00 | ₹226,593.93 | ₹1,800,000.00 | ₹1,226,397.20 | ₹3,026,397.20 |
| 13 | ₹150,000.00 | ₹257,851.04 | ₹1,950,000.00 | ₹1,484,248.24 | ₹3,434,248.24 |
| 14 | ₹150,000.00 | ₹291,702.48 | ₹2,100,000.00 | ₹1,775,950.72 | ₹3,875,950.72 |
| 15 | ₹150,000.00 | ₹328,363.57 | ₹22,50,000.00 | ₹2,104,314.29 | ₹43,54,314.29 |
Base amount: ₹0.00
Interest Rate: 8%
Effective Annual Rate: 8.3%
Calculation period: 15 years
Premature Closing of PPF Account?
Only After 5 Years. In case of PPF Account holder Higher education or Critical Illness.
Protection against Bankrupt.
PPF FORMS:
FORM A to open Account
FORM F: changing Nominee
FORM G: Withdrawal by the nominee
FORM H: Extending PPF for 1-to 5 years.