PPF is a popular option for those who prefer low-risk investments. However, it is important to understand what a PPF Account is and how you can invest in it. It was launched in India by the National Savings Institute under the Ministry of Finance in 1968. A Public Provident Fund allows a deposit of Rs 1.5 lakh annually. Under Section 80C of the Income Tax Act, you can claim a deduction of up to Rs 1.5 lakh annually. Heading back to the question, how much will you earn in 15 years by investing Rs 4,500, Rs 8,500, and Rs 11,500 monthly in the post office Public Provident Fund? Let’s find out.

PPF Account: Post Office vs Bank - Which is better for you?

When choosing where to open a PPF account, you can opt for either a bank or a post office, as both offer the same rules and benefits.

What are deposit rules in PPF?

Minimum and Maximum Deposit: The minimum deposit required in a year is Rs 500, while the maximum deposit allowed in a year is Rs 1.50 lakh.

What options does depositor have on maturity of account?

The depositor can take the maturity payment by submitting the account closure form along with the passbook at the concerned Post Office.

The depositor can retain the maturity value in the account without making further deposits, and the applicable PPF interest rate will still be earned; the payment can be taken at any time, or one withdrawal can be made per financial year.

The depositor can also extend the account for further blocks of 5 years, and so on, within one year of maturity, by submitting the prescribed extension form at the concerned Post Office.

Post office PPF calculation conditions

Investment amount: Rs 4,500, Rs 8,500, Rs 11,500
Annualised rate of return: 7.1 per cent
Investment period: 15 years

What will be PPF corpus after 15 years with an investment of Rs 4,500 per month?

Annual investment: Rs 54,000 (4,500x12)
Your total investment amount over 15 years will be Rs 8,10,000. The estimated interest earned during this period will be Rs 6,54,555 and the estimated maturity amount will be Rs 14,64,555. 

What will be PPF corpus after 15 years with an investment of Rs 8,500 per month?

Annual investment: Rs 1,02,000 (8,500x12)
Your total investment amount over 15 years will be Rs 15,30,000. The estimated interest earned during this period will be Rs 12,36,382, and the estimated maturity amount will be Rs 27,66,382.

What will be PPF corpus after 15 years with an investment of Rs 11,500 per month?

Annual investment: Rs 1,38,000 (12,000x12)
Your total investment amount over 15 years will be Rs 20,70,000. The estimated interest earned during this period will be Rs 16,72,752, and the estimated maturity amount will be Rs 37,42,752.