Urban Money

IndusInd PPF (Public Provident Fund) Calculator

The Public Provident Fund, or PPF, can be defined as a tax-saving income-generating instrument for people with little or no appetite for risk. This government-backed initiative was introduced to help investors save tax on their income. This scheme was introduced by the National Savings Institute of the Ministry of Finance in 1968 to mobilise small savings through an investment that provides significant returns while providing tax-saving benefits.

Investors use this tool to build a healthy corpus for retirement age by regularly setting aside small sums of money over a long period. PPF usually has a 15-year maturity period and a facility to extend the tenure. Due to its tax-saving benefits and attractive interest rates, the PPF has become a big favourite with small investors.

What is the IndusInd Bank PPF Calculator?

The IndusInd bank PPF calculator is a cleverly designed AI-backed tool that helps potential investors understand their investment returns. You can calculate the potential returns with this calculator by providing details like the investment amount and duration.

The calculator then computes the returns based on the details entered by the investor. This provides the return on investment by calculating the final interest earned on the investment amount. The IndusInd Bank PPF Calculator automatically calculates the wealth gained and maturity value of an investment in PPF.

Further, this calculator helps the investor compare the investment maturity value and interest rates with other tenures and lenders.

What Does the IndusInd PPF Calculator Require?

The IndusInd PPF Calculator is ideal to be used by investors as it provides accurate and quick results based on information entered by the user. Below are some details that the investor needs to furnish to use the calculator:

  • Prevailing Interest Rate: The interest rate for the PPF investment is subject to change from time to time. The interest rate is updated on the PPF calculator based on the current interest rate offered by IndusInd bank.
  • Investment Duration: This is the investment tenure or the lock-in period that the money has to be held in the account. Typically, a PPF account has a maturity duration of 15 years. However, the investor can extend the tenure by a block period of five years.
  • Annual Investment Amount: This is the amount that the investor is willing to invest in the scheme yearly. Once the investor has provided the details mentioned above, the IndusInd PPF Calculator will compute the results and provide the following details:
1) Wealth Gained: This is the total amount gained on the investment amount during the entire investment period. 2) Total Investment: This is the sum of all the yearly investments made till the end of the investment maturity period. 3) Maturity Amount: This is the total payout the investor receives at the expiry of the investment period.

How Does the IndusInd PPF Calculator Help You?

The IndusInd Bank PPF calculator assists the investor in determining the investment value at the expiry of the tenure, along with the amount invested and interest accrued. Further, the calculator allows the investor to compare the returns gained with different annual investment amounts and periods. This helps the individual to make an informed decision about the investing journey.

Key Benefits of IndusInd Bank PPF Calculator

Given below are some of the main benefits of using the IndusInd Bank PPF Calculator:

  • User-Friendly Interface: The IndusInd bank PPF calculator has a very user-friendly interface which makes it easy to use. The user just needs to enter the amount they need to invest annually and the investment tenure. This calculator computes the wealth gained, interest accrued, and total investment amount. Further, it also suggests other alternatives to a PPF investment.
  • Computes the Wealth Gained: The calculator determines the wealth generated by your PPF investment. It also calculates the total maturity amount gained at the maturity period's end.
  • Fast and Accurate: Once you provide all the required details, the IndusInd Bank PPF calculator will provide the results within seconds. The calculator uses the inputs provided by the user to provide accurate results. However, the calculator does not guarantee any returns and only estimates the potential returns one can gain from their PPF investments.
  • Efficient Financial Management: Once you know all the details about the returns you can get from your PPF investment, it is easier to decide your future dealings with the instrument.

IndusInd Bank Public Provident Fund Calculator Formula,

The IndusInd bank PPF calculator works on the formula for PPF calculation embedded in the tool. Given below is the formula the calculator uses to compute the maturity amount at the end of the tenure:

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

In this formula,

  • A stands for the maturity amount,
  • P stands for the investment amount
  • n stands for the investment tenure
  • I stands for the interest rate of the PPF

IndusInd Bank PPF Investment Schedule 

Let us assume that you invest Rs. 50,000 per year for 15 years in the IndusInd PPF scheme. The table below details the total interest accrued at the prevailing interest rate of 7.1%.

Year Opening Balance Deposited Amount Interest earned Closing balance Maximum Loan Availed Maximum Withdrawal made
1st year Rs. 0 Rs. 50,000 Rs. 3,950 Rs. 53,950 Rs. 0 Rs. 0
2nd year Rs. 53,950 Rs. 50,000 Rs. 8,212 Rs. 1,12,162 Rs. 0 Rs. 0
3rd year Rs. 1,12,162 Rs. 50,000 Rs. 12,811 Rs. 1,74,973 Rs. 13,488 Rs. 0
4th year Rs. 1,74,973 Rs. 50,000 Rs. 17,773 Rs. 2,42,746 Rs. 28,041 Rs. 0
5th year Rs. 2,42,746 Rs. 50,000 Rs. 23,127 Rs. 3,15,873 Rs. 43,743 Rs. 0
6th year Rs. 3,15,873 Rs. 50,000 Rs. 28,904 Rs. 3,94,777 Rs. 60,687 Rs. 0
7th year Rs. 3,94,777 Rs. 50,000 Rs. 35,137 Rs. 4,79,914 Rs. 0 Rs. 87,487
8th year Rs. 4,79,914 Rs. 50,000 Rs. 41,863 Rs. 5,71,777 Rs. 0 Rs. 1,21,373
9th year Rs. 5,71,777 Rs. 50,000 Rs. 49,120 Rs. 6,70,897 Rs. 0 Rs. 1,57,937
10th year Rs. 6,70,897 Rs. 50,000 Rs. 56,951 Rs. 7,77,848 Rs. 0 Rs. 1,97,389
11th year Rs. 7,77,848 Rs. 50,000 Rs. 65,400 Rs. 8,93,248 Rs. 0 Rs. 2,39,957
12th year Rs. 8,93,248 Rs. 50,000 Rs. 74,517 Rs. 10,17,765 Rs. 0 Rs. 2,85,889
13th year Rs. 10,17,765 Rs. 50,000 Rs. 84,353 Rs. 11,52,118 Rs. 0 Rs. 3,35,449
14th year Rs. 11,52,118 Rs. 50,000 Rs. 94,967 Rs. 12,97,085 Rs. 0 Rs. 3,88,924
15th year Rs. 12,97,085 Rs. 50,000 Rs. 1,06,420 Rs. 14,53,505 Rs. 0 Rs. 4,46,624

Frequently Asked Questions (FAQs)

How much will I get after 15 years in PPF?

The amount of money you will get after investing in a PPF scheme for 15 years depends on the interest rate and annual investment amount. For instance, if you invest Rs. 1,00,000 to the PPF for 15 years at 7.1%, the maturity amount will be Rs. 31,17,276.

How is PPF interest calculated in IndusInd Bank?

In accordance with the PPF rules, the interest is computed monthly but is credited to the account on the financial year ending on March 31. The interest is payable for that particular month, provided that the deposit was made before the 5th of the month.

What is the IndusInd PPF rate of interest?

The Finance Ministry sets the interest rate for PPF for every fiscal quarter. The account interest rate is set at 7.10% p.a. for this quarter of 2022-23.

Can I withdraw PPF before five years?

No. However, you can make partial withdrawals only post the 7th year, subject to certain terms and conditions.

Can I avail loan against PPF investment?

Yes, investors are eligible to avail of a loan of about 25% of the investment amount before the completion of the 6th year of the investment scheme. This loan can be availed for a maximum tenure of 3 years.