PPF Interest Rate Calculator: The Public Provident Fund (PPF), a government-backed savings scheme, continues to remain a preferred investment option despite its interest rate of 7.1 per cent remaining unchanged for several years now.
PPF Interest Rate Calculator
Under the scheme rules, interest is calculated on the minimum balance in the account between the fifth day and the end of each month. As a result, deposits made on or before April 5 are considered for interest calculation for the entire financial year.
PPF Interest Rate Calculator: Secret
The investors seeking to maximise returns should ideally deposit the annual limit of Rs 1.5 lakh between April 1 and April 5. This ensures that the full amount earns interest from the beginning of the financial year.
However, if the deposit is not made within this window, investors can still contribute later in the year. Contributions can be made any time until March 31 of the financial year, subject to the maximum limit of Rs 1.5 lakh.
Interest on PPF accounts is calculated monthly but credited at the end of the financial year. The scheme has a lock-in period of 15 years.
PPF Interest Rate Calculator: EEE Category
PPF also offers tax benefits under the Exempt-Exempt-Exempt (EEE) category. Investments up to Rs 1.5 lakh in a financial year qualify for deduction under Section 80C of the Income Tax Act. The interest earned and the maturity amount are all tax-free.
The scheme remains a long-term savings option for individuals seeking stable and tax-efficient returns.
