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## How is PPF calculated?

Formula used for calculating PPF

Year Opening amount Rate of interest
1 Rs.11400
2 Rs.161400 Rs.23666
3 Rs.335066 Rs.36865
4 Rs.521931 Rs.51067

## What is the PPF interest rate for 2020 21?

As per the notification, PPF will continue to earn 7.10%, the NSC will fetch 6.8%, and Post Office Monthly Income Scheme Account will earn 6.6%. Here is a look at the interest rates on various small savings schemes for the fourth quarter of FY 202021.

## How is 15 year PPF account calculated?

So if you open your PPF account on 4th Nov 2014, this date lies in the financial year 2014-2015, then the financial year ends on 31st Mar, 2015. So the 15 yrs will be calculated from this date (31st Mar, 2015) and the lock in year would be 2015+15 = 2030.

## How is monthly interest on PPF calculated?

How is PPF interest due to my account calculated? The PPF interest amount due to your account is calculated every month on the lowest balance at the credit of account from the close of the 5th day of the month and the end of the month.

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## Is LIC better than PPF?

While LIC policies serve the purpose of insurance, a PPF serves the purpose of savings. PPF is a Public Provident Fund meant for long-term savings and retirement.

PPF VS LIC.

Points LIC PPF
Tenure Flexible 15 years
Premature closure Premature closure allowed with penalties. Premature closure not allowed.

## Can I have 2 PPF accounts?

A person can not open more than one PPF account in his / her name, as per PPF regulations. In case you have two PPF accounts the second would be regarded as invalid since it is not authorized under the regulations.

## Which is better PPF or FD?

If you don’t have a large amount to invest at present, and you’re searching for decent returns is a risk-less path, then PPF can be a good bet for you. That being said, unlike an FD, a 15-year lock-in term comes with PPF. The yields are promised and thus higher than FD rates of commercial banks as of now.

## What is current PPF rate?

PPF is an investment product that even self-employed people can invest. The current interest rate on PPF is 7.1%, which is higher than 6.8% offered on other small savings schemes like the National Savings Certificate (NSC) and 6.7% offered on Post Office 5-year Time Deposit.

## How much I will get in PPF after 15 years?

PPF Calculation for investment periods of:

Investment Period Total PPF Investment Total Interest Earned
15 years Rs. 1.5 lakh Rs. 1.4 lakh
20 years Rs. 2 lakh Rs. 2.88 lakh
30 years Rs. 3 lakh Rs. 9 lakh

## Can I withdraw PPF after 5 years?

You can withdraw from the PPF account after it matures 15 years from account opening. You can also make partial withdrawals, after the end of 6th financial year from account opening. Finally, you can go for premature closure after 5 financial years, on specific medical and educational grounds.

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## Can I invest more than 1.5 lakhs in PPF?

You can invest up to a maximum of 1.5 lakh per annum towards your PPF account. The best part is that you can deposit the money in 12 instalments. The minimum amount that you can invest in their PPF account is as low as Rs. 500.

## Which PPF is best?

SBI PPF is a government-regulated PPF account scheme, which is distributed through SBI branches. SBI PPF deposits allow a maximum limit of ₹ 1.50 Lakh per annum, for a maximum tenure of 15 years. Currently, the interest rates offered by SBI on a PPF account is 7.10%.

## How can I get maximum PPF benefit?

Benefit of Opening PPF Account Early

1. 2- Schedule Monthly Investment in PPF.
2. 3- Invest Lump Sum Also.
3. 4- Open Account In Start of The Financial Year.
4. 5- Deposit at the Start of Every Month.
5. 6- Choose The Bank Which Gives Online Fund Transfer Facility in PPF Account.
6. 7- Take A Loan From PPF instead of Personal Loan.

## Is PPF a good investment?

PPF or Public Provident Fund is a very good product for the long-term fixed income part of your portfolio. You should open a PPF account and invest regularly. At the time of maturity, opt for an extension. Each extension is for five years, which means that if you extend it twice it will finally mature after 25 years.

## What can I do after PPF maturity?

Here are 3 options once your PPF account matures after 15 years

1. Close the PPF account after 15 years: This is as simple as it sounds. Once the initial block of 15 years is over, you can close the account and get the full PPF kitty tax-free.
2. Extend the PPF account by five years without further contributions: This option allows you to extend your account maturity by 5 years.
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