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Allahabad Bank PPF Calculator

₹
Yr
Rate of interest p.a
7.1%
Total invested₹ 75,000
Total interest₹ 60,607
Maturity value₹ 1,35,607
Invested amountTotal returns

The Allahabad Bank PPF calculator is a convenient online tool that quickly estimates how much corpus you can accumulate on your investment over a particular period. It saves you time and effort by providing accurate estimates in seconds and allows you to compare different investment options.

The Public Provident Fund (PPF) is a low-risk investment scheme that can be initiated through the India Post Office and major public and private sector banks in India. The interest on PPF accounts is adjusted quarterly and paid by the government. The current interest rate on PPF is 7.1%.

How Does The Allahabad Bank PPF Calculator Work?

The Allahabad PPF calculator operates based on the following formula:

M = P [(1 + i)^n - 1) / i] x (1 + i)

Where:

M is the maturity amount
P is the annual contribution
i is the annual rate of interest
n is the number of years

Example:

Let's say you plan to invest ₹3,000 every month in PPF, totaling ₹36,000 per year, and stay invested for 15 years with the current interest rate of 7.1%. Here's how you can calculate the maturity amount for your PPF investments:

M = 36,000 x [(1 + 0.071)^15 - 1] / 0.071 x (1.07) M = ₹9,76,368 (approximately).

By investing ₹36,000 every year for 15 years, you can earn a maturity amount of over ₹9.5 lakhs at the end of your investment tenure.

How Should You Use The Allahabad Bank PPF Calculator?

Using the Allahabad Bank PPF calculator is straightforward. Follow these steps:

Step 1: Enter the annual investment amount you intend to invest in PPF.
Step 2: Specify the investment duration.
Step 3: The interest rate is fixed at 7.1%, set by the government.
Step 4: Once you enter these details, the calculator will provide you with the potential returns on your PPF investment.

Example:

Let's consider Ms. Irene, who plans to invest ₹4,000 every month in PPF, totaling ₹48,000 per year, for 25 years with a 7.1% interest rate. Here's how you can calculate her maturity amount using the formula:

M = 48,000 x [(1 + 0.071)^25 - 1] / 0.071 x (1.071) M = ₹32,98,562 (approximately).

By investing ₹48,000 annually for 25 years, Ms. Irene can earn nearly ₹33 lakhs as a maturity amount.

Benefits Of Using The Allahabad Bank PPF Calculator

The Allahabad Bank PPF calculator offers several advantages:

  • Helps investors decide on the investment horizon for achieving their goals.
  • Estimates how much interest can be earned with the principal at hand.
  • Provides quick and accurate results.

Allahabad Bank PPF Calculator - Frequently Asked Questions (FAQs)

Can I withdraw PPF before 5 years?
No. PPF doesn't allow investors to make partial withdrawals before five years. Even after five years, PPF has a restriction on the withdrawal limit. However, investors can avail of a loan on their PPF investment from the third year.
Can I withdraw the full PPF amount after 15 years?
Yes. You can withdraw both the entire amount invested as deposits and the interest earned after the expiry of the lock-in period i.e. 15 years.
What happens if the PPF is not paid?
If you miss the minimum amount of ₹500 in any financial year, your account will be marked as inactive. To activate the account, you will have to pay a small penalty of ₹50 and make a deposit for the years you have missed paying the deposit. In this way, the account will be reactivated and you will start earning interest again.