A Public Provident Fund (PPF) account is a safe, long-term investment that offers lots of tax benefits. This article is about PPF Interest rates of 2017-18 & PPF Calculation. The interest earned is tax-free, and deposits made towards the PPF account can be claimed as tax deductions. Also, the maturity amount is exempt from tax. Hence it’s considered a great investment option.
PPF interest rate for 2017-18?
The current PPF interest rate for the first quarter of the 2017-2018 financial year (April-June) is 7.9%. This is a 0.1% decrease from the previous interest rate of 8.0% for the last quarter of 2016-2017.
PPF Interest Calculation FAQs
- The interest on PPF accounts is compounded annually. It is also not taxed. This coupled with the fact that it’s a long term investment of 15 years or more leads to a build up of a large corpus of saving.
- The minimum deposit amount for each year is Rs.500, and the maximum deposit amount for each year is Rs.1,50,000.
- While planning for retirement, you can decide how much total amount you will need, and then save accordingly.
- You can make partial withdrawals from the 7th year on wards. However, they are subject to certain conditions.
- You can take loans against the balance in your PPF account from the 3rd to the 6th year.
The following table shows how PPF interest is calculated, and the final maturity amount. It also helps to determine the amount of withdrawals and loans allowed.
Understanding PPF Interest Rate
- The rate of interest on PPF accounts is revised by the central government every quarter.
- The interest on deposits in PPF accounts is compounded annually.
- Interest rates on PPF accounts are the same for all banks and post offices.
PPF Interest Rate History
The PPF interest rates of the last few years:
|Year||PPF Interest Rate|
|2017 – 2018 (Q1)||7.9%|
|2016 – 2017 (Q3 and Q4)||8.0%|
|2016 – 2017 (Q1 and Q2)||8.1%|
|2015 – 2016||8.7%|
|2014 – 2015||8.7%|
|2013 – 2014||8.7%|
|2012 – 2013||8.8%|
PPF Interest Rate Calculation on 1.5 lacs investment per year
When we invest 1.5 lacs then maturity is 4437132 (44.4 Lakhs) and below is the steps-
|Year||Opening Balance||Amount Deposited||Interest Earned||Closing Balance||Loan (Max.)||Withdrawal (Max.)|
Current PPF Interest Rate
PPF interest rate 2017-2018 for different banks are same.
|SBI Bank PPF Interest Rate||7.9%|
|HDFC Bank PPF Interest Rate||7.9%|
|ICICI Bank PPF Interest Rate||7.9%|
|Axis Bank PPF Interest Rate||7.9%|
SBI and other banks in which we can open a PPF account?
You can open a PPF account in post offices, or in any of the following banks:
Public Sector Banks:
- State Bank of India
- State Bank of Travancore
- Dena Bank
- State Bank of Hyderabad
- State Bank of Bikaner and Jaipur
- Allahabad Bank
- State Bank of Patiala
- Bank of Baroda
- Canara Bank
- Bank of India
- Bank of Maharashtra
- State Bank of Mysore
- Central Bank of India
- Corporation Bank
- IDBI Bank
- Indian Overseas Bank
- Oriental Bank of Commerce
- Punjab National Bank
- Union Bank of India
- United Bank of India
- Andhra Bank
- Vijaya Bank
- Punjab and Sind Bank
- UCO Bank
Private Sector Banks:
- ICICI Bank
- Axis Bank
- HDFC Bank
Keep in mind that not all branches of these banks can open PPF accounts. To find out the list of bank branches where you can open a PPF account visit the nearest branch of the particular bank. You can also get the details from the bank’s website, or by calling its Customer Care number.
To read about transferring a PPF account, click here.