How does the PPF calculator for post office work?

Enter how much you will deposit each year, from Rs 500 to Rs 1.5 lakh. The calculator adds interest at the current PPF rate once a year for 15 years and shows the maturity value. The real amount can change because the rate is reviewed every quarter.

Can I withdraw money from my post office PPF account?

Yes, from the 7th financial year, once a year, up to a set limit. Before that, you can take a loan between the 3rd and 6th year.

Is PPF in post office better than in a bank?

The rate, rules and tax benefits are the same in both, because the government sets them. Choose whichever is more convenient for you. You can also move the account later.

What happens after 15 years in PPF?

You can close the account and take the full amount, or extend it in blocks of 5 years with or without new deposits. To keep depositing, submit the extension form within one year of maturity.

PPF Calculator: Post Office Public Provident Fund Maturity Value

Q: How to open a PPF account in post office?

Visit a post office with Aadhaar, PAN and photos, fill the PPF form, and pay at least Rs 500. You get a passbook, and you can deposit more any time during the year up to Rs 1.5 lakh.

This PPF calculator for post office accounts shows how much your Public Provident Fund can grow to in 15 years. Enter your yearly deposit and the calculator uses the current PPF rate, compounded once a year. pincodeoffice.com is an independent site, not India Post. For official rules, see the India Post website.

How PPF in post office works

PPF is a long term savings scheme backed by the Government of India. You deposit money every financial year for 15 years. Interest is worked out every month and added once a year, so it compounds. The PPF rate can change every quarter, and your whole balance earns the new rate. See the current rate on our post office schemes page.

A PPF account post office holders open works the same way as one in a bank. The rules are set by the government. You can also move your account from a post office to a bank, or the other way, without closing it.

Post office PPF account rules

These are the main rules for PPF post office accounts.

Minimum deposit: Rs 500 in a financial year.
Maximum deposit: Rs 1.5 lakh in a financial year. Extra money earns no interest.
How to pay: in one go or in parts during the year.
Tenure: 15 full financial years after the year you open it.
Who can open: any resident Indian adult, one account only. A guardian can open one for a minor. Joint accounts are not allowed.

The 5th of the month rule

Interest for each month is worked out on the lowest balance between the 5th and the end of the month. So a deposit made on or before the 5th earns interest for that month. If you pay the full yearly amount, try to do it by 5 April to earn interest for the whole year.

Loan and partial withdrawal from PPF

Loan: from the 3rd to the 6th financial year. You can borrow up to 25% of the balance at the end of the second year before the year you apply. Interest on the loan is a little above the PPF rate. Repay it within 36 months.
Partial withdrawal: from the 7th financial year, once a year. The limit is 50% of the lower of two balances: the balance at the end of the 4th year before, or at the end of the year before.

Premature closure and extension

You can close a PPF account early only after 5 financial years, and only for set reasons. These are serious illness of you or your family, higher education of you or your children, or a change of residence status. On early closure, interest is cut by one percentage point.

At maturity you can close the account or extend it in blocks of 5 years. You can extend it without new deposits and keep earning interest. To extend with deposits, submit the extension form within one year of maturity.

If you miss the minimum deposit in a year, the account becomes discontinued. To revive it, pay Rs 500 for each missed year plus a fine of Rs 50 for each year.

Tax on PPF

PPF is tax free at all three stages. Deposits qualify for a deduction under Section 80C (Section 123 under the new Income-tax Act), within the overall limit of Rs 1.5 lakh a year. This deduction is available only under the old tax regime. The interest and the maturity amount are tax free under both regimes.

Worked example: PPF calculator post office monthly

Here is how to use this post office PPF calculator. Say you save Rs 5,000 every month. That is Rs 60,000 a year. Type 60000 in the calculator. You deposit Rs 9 lakh over 15 years, and the calculator shows the maturity value at today's rate. Now type the full Rs 1.5 lakh. You deposit Rs 22.5 lakh, and the interest share becomes much bigger because of compounding. The calculator assumes you pay at the start of each year. If you pay monthly, the value will be a little lower. Any PPF post office calculator gives an estimate only, because the rate can change.

How to open a PPF account in post office

If you are wondering how to open PPF account in post office branches, the steps are simple.

Visit your nearest post office with Aadhaar, PAN and photos. Find it with our pincode of my location tool and check the post office timings.
Fill the PPF account opening form and add a nominee.
Pay the first deposit of at least Rs 500.
Collect your passbook. Later deposits can be made at the counter, or online if your post office savings account is linked to internet banking or an India Post Payments Bank account.