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.
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.
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.
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% |
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.) |
|---|---|---|---|---|---|---|
| 1 | 0 | 150000 | 12150 | 162150 | 0 | 0 |
| 2 | 162150 | 150000 | 25284 | 337434 | 0 | 0 |
| 3 | 337434 | 150000 | 39482 | 526916 | 40538 | 0 |
| 4 | 526916 | 150000 | 54830 | 731746 | 84359 | 0 |
| 5 | 731746 | 150000 | 71421 | 953167 | 131729 | 0 |
| 6 | 953167 | 150000 | 89357 | 1192524 | 182937 | 0 |
| 7 | 1192524 | 150000 | 108744 | 1451268 | 0 | 263458 |
| 8 | 1451268 | 150000 | 129703 | 1730971 | 0 | 365873 |
| 9 | 1730971 | 150000 | 152359 | 2033330 | 0 | 476584 |
| 10 | 2033330 | 150000 | 176850 | 2360180 | 0 | 596262 |
| 11 | 2360180 | 150000 | 203325 | 2713505 | 0 | 725634 |
| 12 | 2713505 | 150000 | 231944 | 3095449 | 0 | 865486 |
| 13 | 3095449 | 150000 | 262881 | 3508330 | 0 | 1016665 |
| 14 | 3508330 | 150000 | 296325 | 3954655 | 0 | 1180090 |
| 15 | 3954655 | 150000 | 332477 | 4437132 | 0 | 1356753 |
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% |
You can open a PPF account in post offices, or in any of the following banks:
Public Sector Banks:
Private Sector Banks:
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.
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Earlier Govt has given good interest rate on PF. But BJP Govt have reduced the rate of interest on PF lovely and it is a loss of crorer peoples who are doing job in Public / Pvt / Govt. sector.
Who will give attention to this important issue ?