Urban Money

HDFC PPF (Public Provident Fund) Calculator

HDFC PPF calculator is a self-help tool designed for the users to conveniently compute the maturity value and interest they stand to earn from the scheme. The calculator helps the user derive the investment returns and provides them with leverage to plan their investments in the scheme. The user must fill the fields with a ballpark value of the amount, tenure, and interest rates. The calculator will provide the values of maturity and interest amount. Users can also mention and compare multiple values to determine which suits their respective investment goals.

The PPF is a savings and investment avenue offered by the government to provide a financial cushion to the citizens at the time of their retirement. The scheme guarantees assured returns and tax benefits to its investors. HDFC Bank provides unparalleled services to make the investing process in this scheme hassle-free and convenient. The individual can employ an HDFC PPF calculator to compute the appreciation of their contributions. 

Public Provident Fund (PPF)

The Public Provident Fund or PPF is a tax-saving investment instrument that aims to build a significant corpus for the investors by providing a platform for them to make contributions. The contributions made to the account can be either in instalments or lump-sum.

  • The scheme is a long-term income instrument, and the investor has to oblige to the 15 years lock-in period.
  • The interest rate is set by the Central Government every quarter.
  • The investment made in the scheme is risk-free with a sovereign-backed guarantee. 
  • Under Section 80 C of the Income Tax Act, the investments are eligible for a tax deduction up to Rs 1.5 lakhs.
  • The interested individuals can establish their PPF account with an investment of as little as Rs 500. However, the maximum amount the investor can contribute to the scheme in a year cannot exceed Rs 1.5 lakhs.
  • The scheme also offers an option to the investors to avail of a loan against the scheme.

HDFC PPF Calculator Requirement

The HDFC PPF calculator is an easy-to-use tool with a straightforward interface. Even first-time users can utilise it to calculate the number of returns on the investment. The user is required to mention values such as

  • Deposit Amount: This refers to the investment amount the account holder is willing to make in a year. This ranges from Rs 500 to Rs 12,500.
  • Number of Deposits: Refers to the number of times an account holder is willing to contribute to the scheme in a financial year. The options provided are 1,2,3,4,6,12.
  • Tenure: The tenure is predetermined at 15 years, and the interest rate mirrors the current interest offered on the investment scheme. 

HDFC PPF Calculator - Maturity Value Computation 

The HDFC PPF calculator is used to derive the following values for the user

  • Maturity Amount: The amount the investor would receive upon maturity 
  • Interest earned: The net profit the investor made during the investment tenure 
  • Total Amount Invested: The total amount invested during the tenure.

The user must fill in information such as the deposit amount and frequency of deposits to derive the maturity amount.

Let’s take an example for a better understanding.

Suppose you want to invest in the PPF scheme. The yearly investment you’re willing to make is Rs 6,000, which is fulfilled with a monthly instalment of Rs 500. The lock-in tenure for the scheme is 15 years, and the current interest rate on the investment scheme is 7.1% per annum. You’ll mention the following values:

  • Deposit Amount: Rs 500
  • Number of Deposits: 12
  • Duration: 15 Years
  • Rate of interest: 7.1%

After mentioning these values on the calculator. The user would find the -

Maturity Amount Value = Rs 1,57,784

Total Amount = Rs 90,000

Total Interest = Rs 67,784

*It is to be noted that the values derived in the HDFC PPF Calculator are indicative only. 

How can HDFC PPF Calculator Help the User? 

The HDFC PPF calculator helps the user to estimate the maturity amount on the investment in the PPF scheme. This estimation helps the user compare whether the returns on the scheme complement the user's financial goals. The HDFC calculator helps the user to derive the

  • Amount Invested
  • Maturity Amount 
  • Interest Earned during the tenure
  • Compute multiple values by varying the amount an investor intends to invest 

Benefits of the HDFC PPF Calculator  

The HDFC PPF Calculator is a tool that caters to the computational requirements of the user regarding the returns on the public provident fund. The calculator helps the user in the following ways:

  • Tidier calculation regarding the returns compared to the manual method.
  • Even though the amount derived is indicative. The HDFC PPF calculator gives an overview to the user on the returns to expect when investing in this secure investment instrument.
  • HDFC PPF Calculator is free to use and can be easily accessed anytime.
  • The HDFC PPF Calculator allows the user to input multiple values in the calculator to derive the return amount that suits their financial goals. 

HDFC Bank Public Provident Fund Calculator Formula?

The HDFC Bank calculator employs the following formula to calculate the maturity amount of contributions made during the investment tenure.

F = P[{(1+i) n - 1} /i]

Where,

  • F is the Maturity amount on the PPF. 
  • P is the amount of the annual instalments
  • ‘n’ refers to the tenure of the investment 
  • ‘i’ is the rate of interest the scheme offers to the investors.

HDFC PPF Investment Schedule 

The PPF investment is a secure and concrete tax-saving investment plan that can help investors earn attractive returns on their investments. Let’s take a look at what an amortisation table looks like to get a better understanding of the investment schedule of the scheme.

  • Annual Investment: Rs 60,000
  • Interest Rate: 7.1% per annum

Investment Year

Deposited Amount (Annual) Interest Earned (Rs.) Closing Balance (Rs.)
1 60,000 2,307 62,307
2 60,000 6,731 1,29,039
3 60,000 11,469 200,508
4 60,000 16,543 277,052
5 60,000 21,978 3,59,030
6 60,000 27,798 446,828
7 60,000 34,032 540,861
8 60,000 40,708 641,569
9 60,000 47,858 7,49,428 
10 60,000 55,516 8,64,945 
11 60,000 63,718 988,664
12 60,000 72,502 11,21,166
13 60,000 81,910 12,63,077
14 60,000 91,985 14,15,063
15 60,000 1,02,776 15,77,840
  • It can be noted that the interest on the investment is compounded annually. 
  • The amount the investor will receive at the maturity date will be Rs 15,77,840
  • The interest an investor stands to make from the investment during the tenure is Rs 6,77,840. 
  • The total amount invested is Rs 9,00,000.

HDFC PPF Interest Rates

The Finance Ministry of India determines the interest rate on the PPF quarterly after a thorough assessment. The interest rate has been showcasing a downward trend in recent years. The interest on the PPF is computed every month and is credited at the end of the year to the PPF account.

Find below the table exhibiting the Interest rates offered on the investment scheme in 2022.

Quarter (2022)  Interest Rate 
July to September 7.1%
April to June 7.1%
January to March 7.1%

Steps to Open a PPF account in HDFC Bank?

The PPF offers a secure investment opportunity to investors. This scheme is a lucrative investment instrument for investors to generate significant wealth and handsome returns. The procedure to open a PPF account is simple. The investor must establish an account with the bank or a post office. The HDFC Bank provides both offline and online options to its customers. 

The HDFC customer can open a PPF account with convenience and ease. Implement the following steps to open an HDFC account online.

  • Log into HDFC Bank net banking services 
  • Navigate to the ‘Offers Tab’ and select the ‘Public Provident Fund’ option. 
  • Verify the details on the next screen and mention the deposit amount. 
  • Select whether you want to be a nominee and submit your application. 
  • It is to be noted that the application process would be concluded on the prerequisite that the Aadhaar is linked to the bank account. 
  • The applicant must link the Aadhaar card with their bank account before initiating the application process. 
  • The applicant can now make contributions to their PPF account directly from their savings account.

Frequently Asked Questions (FAQs)

Is PPF available in HDFC Bank?

Yes, HDFC Bank offers online services that a user can avail of to invest in the PPF account conveniently.

Is it safe to invest in an HDFC PPF online?

Yes, it is extremely safe for the users to establish their PPF account with the HDFC bank.

Can I open more than one PPF account in HDFC Bank?

Per the PPF rules, only one PPF account is allowed per person. If an investor does not adhere to this rule and opens another account. They won’t receive any interest on the second account.

What happens if I miss my PPF contribution for a year?

If an investor fails to deposit in the account for a year, their account will be deactivated. However, they can resume the account by depositing along with the penalty fees.

Is HDFC Bank PPF investment Tax-free?

The interest is fully exempted from the taxes under Section 80 C of the Income Tax Act.