Do you have any information about PPF? PPF is a public provident fund that is referred to as one of the most popular investment options in India. It is the investor’s product for the long term that is managed by the central government, and this makes it a safe investment choice for all.
Tax benefits and risk-free returns are the important factors that make PPF investment popular. But before investing in PPF or creating a PPF account, it is suggested to use the PPF calculator to get the right idea of returns that you get from this investment.
What is the PPF calculator?
There is a need to consider various factors to get the potential returns from PPF. You should determine how you want to invest, how much you want to invest, and if you want to invest after the lock-in period. The calculator consists of interest rates prevalent at investment time and gives you results accordingly.
How does the PPF calculator help you?
PPF investment is a little bit confusing for first-time investors. But the PPF calculator makes it easier for you. It helps you to keep an eye on account growth and balance.
It helps you to resolve your queries if the interest rates are changing and how they affect maturity levels. The tools calculate the potential profit and display the data in seconds.
The good thing is that you only need to give the basic information, like investment frequency, deposit amount, and tenure, to the PPF calculator. After this, you can see the expected interest rate on the calculator. In this way, the PPF calculator helps to make the calculations quick and easier.
A step-by-step guide to using the PPF calculator.
It is easy to use the PPF calculator. Follow the given steps if you do not know how to use the PPF calculator easily.
- Investment frequency
It is the first important step to follow. Here you can get four different options, monthly, quarterly, yearly, and half-yearly. You can choose any, based on how much you want to invest in PPF.
- Deposit amount
In this, you must enter the preferred investment amount that you want to make in the PPF account. You are allowed to invest up to 1.5 lakhs per year.
- Current PPF balance
This section is for those investors who already have the balance in their PPF accounts. Interest earned is calculated based on the account balance at the end of every year. The PPF account balance is compounded once a year.
- Investment duration
You can find the slider under the calculator section that lies from 15 to 70 years. You can easily adjust the investment duration based on your investment term. Once you select tenure, the calculator determines the estimated returns based on your inputs and the current interest rate offered by the government.
PPF calculators are mainly used to calculate the returns that you get from PPF investment. It helps the investors to determine whether PPF investment is worth it for them or not.