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PPF Return in 15 Year | How to Maximize the PPF Return?

What is PPF Account?

PPF is an acronym for Public Provident fund which is an account for Provident Fund that is available to everyone. Usually, PF is given to the employee by the employer as a job benefit which is known as EPF but PPF account is for everyone who wants to save the money for their retirement. The PPF account is the best account as it is regulated by the Central Government which makes the account to have a guaranteed return and one of the best Return on Investment. In this article, we will discuss the how PPF Account provides return and how to get the best returns on your investment?

PPF Account Calculation for 15 Years

The maturity period of the PPF Account is 15 years but it also offers a 20 year and 25 years extension for getting maximum benefit from the account. One of the best things about the PPF Account is its interest rate which is 8% P.A which is one of the highest interests by any Bank account. The PPF account can be best explained by taking the example. Let’s take an example of a PPF account opened by Rajesh a 35-year business owner. He opens a PPF account in the SBI Bank at the interest rate of 8% P. A. for 15 years. The PPF Calculator for 15 Years is as follows-
·         An Amount of 50,000 is deposited in the bank account every year
·         Interest rate was 8% calculated on Compound bases
·         The account tenure is 15 years
·         The amount is paid before the financial year
Year
Deposit
Interest Earned
Closing Balance
1
50,000/-
4,000.00/-
54,000.00/-
2
50,000/-
8,320.00/-
1,12,320.00/-
3
50,000/-
12,985.60/-
175,305.60/-
4
50,000/-
18,024.48/-
2,43,330.48/-
5
50,000/-
23,466.40/-
3,16,796.40/-
6
50,000/-
29,343.68/-
3,96,139.68/-
7
50,000/-
35,651.20/-
4,81,831.20/-
8
50,000/-
42,546.16/-
5,74,377.48/-
9
50,000/-
49,950.16/-
6,74,327.16/-
10
50,000/-
57,946.16/-
7,82,273.16/-
11
50,000/-
66,581.84/-
8,98,854.84/-
12
50,000/-
75,908.40/-
10,24,763.40/-
13
50,000/-
85,981.04/-
11,60,744.04/-
14
50,000/-
96,859.52/-
13,07,603.52/-
15
50,000/-
1,08,608.32
14,66,212.32/-
Total
7, 50,000/-
7,16,213.28/-
14,66,212.32/-
Total Deposit Amount-7,50,000.00/-
Interest Earned-7,16,213.28/-
Maturity Amount-14,66,212.32/-
As you can see after 15 years the interest earned in the account is almost double the amount deposited amount, therefore, it can also be said that this account doubles your amount every 15 years which makes this account very attractive for those who want to save for their future or retirements.

How to Maximize the PPF Return?

Maximum return can be earned from PPF Account by following a few basic steps-
  • ·         The amount deposited in the account is calculated on monthly bases but the amount is reflected at the end of the financial year. Therefore, depositing the amount at the beginning of the financial year will provide more interest than monthly deposits
  • ·         If you decide to deposit on monthly bases then you must deposit the amount before 5th of every month to earn interest for that month.
  • ·         Open your PPF Account as early as possible. If you are a parent then you can also open PPF account in behalf of your child.
  • ·         If you want to take a Personal Loan then opt for the PPF Loan as the interest rate on PPF Loan is 2% more than the interest rate of that year which is way less than the Personal loan interest rate.
Also Check- PPF for 20 Years

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