The Public Provident Fund Scheme was introduced by the Finance Ministry’s National Savings Institute to encourage wealth management. PPF is a long term investment plan designed to save and grow your savings to ensure financial stability in the future.
The PPF scheme is linked to the fluctuating market rates. The Employee Provident Fund Organisation decides the rate of returns on PPF during the beginning of the financial year. PPF comes under the EEE(Exempt-Exempt-Exempt) bracket of the income tax slabs. Hence, the principal amount, interest paid, and maturity value is fully-exempt under the tax laws.
PNB Public Provident Fund Calculator
Headquartered in New Delhi, Punjab National Bank is India’s first ‘Swadeshi Bank’ and currently the second largest public sector bank in the country. It offers an array of financial services to its customers, one of which is PPF scheme.
The PNB PPF scheme offers sustainable returns with a minimum limit of INR 5,000 for a lock-in period of 15 years. PNB provides their customers with a PPF calculator to calculate the return on investment.
Key Features of PNB PPF Calculator
Compiling the accumulated interest and maturity value manually is a time-consuming task. PNB simplifies the process by providing a digital PPF calculator. The key features of the PNB PPF calculator are listed below:
- The calculator gives the investor a clear idea of the returns on his investment on the date of maturity.
- It assists the investor to make an informed decision on the matters of amount of investment and the tenure
- The PPF calculates an investment schedule beforehand itself. The estimates help in planning when and how much to invest in order to get exceptional returns.
Punjab National Bank PPF Maturity Value Calculation
The PNB PPF calculator is an online AI based tool that assists a PPF investor with an estimated value of interest earned on the date of maturity. By comparing the estimates with your requirements, you can determine if the PPF aligns with those.
Punjab National Bank provides a PPF calculator on their official website. You are simply required to enter the annual investment amount, tenure of your PPF, and rate of interest and the calculator will display the estimated results along with the investment schedule within seconds.
Note: The interest on your PPF is calculated on a monthly basis in accordance with the interest rates set by the Reserve Bank of India. Currently the ongoing interest rate is 7.1%
Alternatively, you can ascertain the maturity value manually using the mathematical formula given below:
- F refers to the maturity value of the PPF
- P refers to the annual installments
- I refers to the interest rate on PPF
- n refers to the tenure of the PPF
Punjab National Bank PPF Rates
The Reserve Bank of India sets the interest rate on the Public Provident Fund Scheme in accordance with the internal and external factors prevailing in the country. The PPF rates are set on a quarterly basis.
|January 2022 to March 2022||7.1%|
|April 2022 to June 2022||7.1%|
PNB PPF Investment Schedule
The investment schedule shows a breakdown of the interest accumulated on a periodic basis. According to the PPF guidelines, an individual can invest upto INR 1.50 lakhs in a PPF account on a monthly, quarterly, half yearly, or annual basis.
If an investor opts for an annual PPF investment, he must deposit it before 5th April for maximum gains. Incase of a monthly investment it must be deposited before the fifth of every month.
Below is an illustration of an investment schedule for an annual investment of INR 1,50,000, for a tenure of 15 years, at 7.10% p.a.
|Year||Deposited Amount||Interest Earned||Closing Balance|
|1||INR 1,50,0000||INR 10,650||INR 1,60,650|
|2||INR 1,50,0000||INR 32,706||INR3,32,706|
|3||INR 1,50,0000||INR 66,978||INR 5,16,978|
|4||INR 1,50,0000||INR 1,14,334||INR 7,14,333|
|5||INR 1,50,0000||INR 1,75,701||INR 9,25,701|
|6||INR 1,50,0000||INR 2,52,076||INR 11,52,076|
|7||INR 1,50,0000||INR 344,524||INR 13,94,523|
|8||INR 1,50,0000||INR 4,54,185||INR 16,54,184|
|9||INR 1,50,0000||INR 5,82,282||INR 19,32,281|
|10||INR 1,50,0000||INR 7,30,124||INR 22,30,123|
|11||INR 1,50,0000||INR 8,99,112||INR 25,49,112|
|12||INR 1,50,0000||INR 10,90,749||INR 20,90,749|
|13||INR 1,50,0000||INR 13,06,643||INR 32,56,642|
|14||INR 1,50,0000||INR 15,48,514||INR 36,48,514|
|15||INR 1,50,0000||INR 18,18,209||INR 40,68,208|
Steps to Open a PPF Account in Punjab National Bank
Investors can open a PPF account by visiting any authorized branch across the country or by using the internet banking system in the comfort of their home. Given below is the step-by-step process of doing so:
Step 1: Visit your nearest PNB branch
Step 2:Obtain Form A from a bank executive and fill it
Step 3: Submit the required KYC documents and two recent passport size photographs.
Step 4: Request for a Pay-In slip to transfer money to your PPF account
Step 5: The bank will provide you with a PPF passbook. You will be required to produce the passbook while claiming deductions u/s 80C.
Step 1: Visit the PNB official website.
Step 2: Login to your internet banking system using your ID and password.
Step 3: Under the ‘my short-cut’ tab select ‘PPF account’.
Step 4: On selecting ‘PPF Account’ a drop down menu will be displayed, click on ‘Open a PPF Account’.
Step 5: You will be redirected to a new page.
Step 6: Under the drop down menu, choose whether you want to open a ‘self account’ or a ‘minor account’.
Step 7: Furnish all the details required for opening a new PPF account and select the PNB branch where you want to maintain your account.
Step 8: Click on ‘submit’.
Step 9: Request confirmation will be displayed on the screen.
Step 10: Enter your transaction details and click on ‘submit’.
Step 11: A “Cyber Receipt” with GBM Reference number will be generated on the IBS screen.
Step 12: Download the receipt and take a print out of the same.
Step 13: Attach your passport size photograph along with the receipt and enclose the KYC documents.
Step 14: Hand over the application form enclosed with the KYC documents to the authorised branch.
Tax Benefits of Public Provident Fund
Public provident funds qualify for deduction u/s 80C of Income Tax Act 1961. The maximum limit must not exceed INR 1,50,000. PPF falls under the EEE category. Hence the interest accumulated on a PPF is not taxable under the act.
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Frequently Asked Questions (FAQs)
What if I miss an installment in PPF?
In the event of failure of depositing the investment, your account will be deactivated. In order to reactivate your account, you have to pay a penalty fee of INR 50.
Is there any minimum and maximum limit on investment in the PPF account?
The minimum amount for a PPF investment is INR 500, while the maximum amount that can be invested is INR 1,50,000.
How many contributions can be made to my PNB PPF Account in a year?
You can invest in a PPF on a monthly, quarterly, half yearly, or annual basis.
Are there any tax benefits while making investments in PPF?
Yes, interest accumulated on PPF is exempted u/s 80C of Income Tax Act,1961.
Can I withdraw PPF before 5 years?
No, Punjab National Bank allows withdrawals from your PPF account only after the 7th year since the account was opened.