Today, a Public Provident Fund (PPF) account has become the most prized possession for many people looking for long-term and productive wealth returns. The reasons are pretty obvious.
For instance, PPF perfectly suits individuals with a low-risk appetite. Similarly, it contains several other features and advantages, like:
PPF is a government-backed scheme. The Government of India has done its homework and is sure to pay you interest on your PPF investment.
The investment is not market-linked. Your investment is less prone to market volatility and is less likely to witness a dip in its value.
PPF offers guaranteed returns, thereby protecting the investment requirements of people.
PPF has less risk of default as the Government of India uses it for their budgetary purposes and deposits interest on time.
The returns of PPF are stable. It means it does not matter how the economic conditions are in a particular year; you certainly earn the interest.
How can HDFC PPF Calculator help you?
PPF is considered one of the most secured financial instruments in India. Likewise, it is equally valid to make the appropriate pre-calculations to arrive at the correct maturity amount, interest earned, and more.
Sounds like an arduous job? It need not be! You can make critical calculations regarding your PPF using the HDFC PPF Calculator. With the HDFC PPF calculator, you can perform several queries like:
Amount you want to invest.
Number of years you wish to invest.
To get the best results from the HDFC PPF calculator, you will need four pieces of information:
Tenure of the PPF account
Deposit/Payment Frequency
Deposit Amount
Interest Rate
How to open a PPF account in HDFC
Currently, you can open a PPF account in HDFC in two ways:
Offline
Online
Each method is unique and has its features and characteristics. If you are not familiar with these methods, read below to understand better.
Offline method to open a PPF account in HDFC Bank
Most banks offer this facility to open a PPF account. To avail of this option, you will need to follow these steps:
Visit any HDFC Bank in your locality. You can visit HDFC's official website to know which location will be convenient for you.
Collect the requisite form. This should not be a problem as all major HDFC branches have such a form at their branch.
Fill in the application form with all relevant details. Make sure you have entered the correct information. Ideally, you ought to re-check every detail once more before proceeding further.
As per HDFC's KYC documents requirements, you will have to furnish those documents together with your passport-sized photograph.
Deposit the amount you wish to open the PPF account with. The minimum amount to open the account is fixed at Rs.500, whereas the maximum amount permitted initially is Rs.70,000. However, you can make a total deposit of Rs.1.5 Lakh during an entire financial year.
Once this step is completed, a passbook for your PPF Account will be provided. This passbook will contain all necessary information like:
Account holder.
PPF Account number.
Branch name, etc.
Online method to open a PPF account
You can now open your PPF account with HDFC via the online route 24*7. This is brilliant news, as you can open this type of account from anywhere, irrespective of your geographical location.
The entire process is paperless, and it gets completed with a few clicks! You will have to consider these factors to open an offline PPF account:
You ought to have a Savings Account with HDFC. If you do not have one, make sure to have one first, and then go ahead to open your HDFC PPF account.
The said account must have the MobileBanking/ NetBanking enabled. Without this feature, you will not succeed in opening your PPF account.
Make sure your 'Aadhaar' number is linked to your account. Trust us, this will save you from a lot of trouble in the future.
The mobile number linked to your Aadhaar should be active. It is necessary to receive the OTP and authorise your e-sign/e-authorize requirements for opening the PPF account within seconds!
Advantages of using PPF Account Calculator
By using the HDFC PPF Account Calculator, you will find yourself in a very comfortable and advantageous situation regarding your future returns. The most significant benefit is—you get all the details in real-time. It is a plus for people who prefer and rely on anything that accommodates real-time data.
After years of rigorous research and methodological analysis, the HDFC PPF calculator is a reality. Industry experts devised this calculator with strenuous efforts to give you the best results. The result is a powerful tool for users to get a better online calculating experience.
Yes, there are several other tools to make such calculations. None of them stands close to what this PPF Account Calculator can do for you.
Some of the prevalent benefits of the HDFC PPF calculator are:
- Ideate how much investment you ought to make?
- Learn, what is the amount of interest you will earn from this investment?
- Know how much will be your tax savings?
- You may have a limited fund for a limited period at your disposal. Using this calculator, you can arrive at what investment is best suited for the period of your choice.
- Deciding on the maturity period becomes convenient and effortless. Nevertheless, it is worth remembering that you will need to invest for a minimum of 15-years.
After the expiry of this period, if you wish to extend paying the additional amount, you can do so but in a block of 5-years. It can continue up to a maximum period of 50-years. - This calculator is exceptionally beneficial in a situation where you wish to know the balance between your desired return and investment amount.
- Using the calculator minimises instances of human errors that are frequent when you perform the same calculation manually.
- PPF calculator is the best tool to rely on in matters about tax planning. As you get to know every tiny detail concerning your PPF investment, it helps in planning investments.
There are stipulated guidelines and rules regarding the Public Provident Fund (PPF):
- Your PPF account is calculated monthly by entering your investment details in the HDFC calculator.
- Your account is credited on 31st March of a financial year.
- The interest in question gets compounded every year, and the calculator can do this job brilliantly.
- The PPF calculation process is entirely different from the ones done in the case of other savings alternatives.
These factors explain why the use of this calculator can give you enough peace of mind.
How to withdraw money from PPF?
Gone are the days when you needed to visit a bank or post office to withdraw your PPF amount. Currently, you can withdraw the same online as well!
Of course, you will need to follow certain steps:
- Step 1: Visit the official website of your bank or post office and download Form C or the PPF Withdrawal Form.
- Step 2: Fill the details of the said Form C together.
- Step 3: Upload this form together with a copy of your PPF passbook.
In case you wish to withdraw by physically visiting your bank or post office, you will be required to submit these documents in hard copy to them.
It is not mandatory to withdraw only after maturity. You can even opt for premature withdrawal as well. In such a circumstance, you are permitted to withdraw up to a maximum limit of 50% of the amount standing credited in your account till the end of the 4th year.
How to take a loan on PPF?
You can always count on your PPF account to meet your short-term lending requirements. The best part is: you don't have to incur huge interests in this regard. All you have to pay is a 1% interest rate.
Your PPF account is more than a mere investment-cum-tax-saving instrument. A loan against PPF serves as the ideal fundraiser alternative during emergencies.
Of course, loans against PPF are subject to certain conditions. For instance, you are entitled to avail of this facility from the 3rd to 6th year of your PPF account opening. The applicable interest rate has been fixed at 1%.
However, please be informed on the expiry of the 6th year, you lose the right to avail of the loan against your PPF account. Coming to the maximum amount you can avail of as a loan, the prescribed norm is 25% of your PPF balance, standing as the previous financial year's opening balance.
There are several benefits of taking a loan against your PPF account, like:
You get loans at competitive rates.
You are saved from undergoing the hardships of pledging any of your assets as collateral security.
Frequently Asked Question
Q1. How is HDFC PPF interest calculated?
The balance standing credit in your PPF account on the 5th of every month is considered for calculation purposes. On account of this, if you wish to gain maximum benefit, deposit your money before the 5th of every month.
Q2. Is HDFC PPF good?
The answer is an absolute 'Yes'. Nothing can get better than this financial instrument in security, safety, and returns parameters. After all, this long-term government-backed investment scheme enjoys accreditation and backing from the Government of India.
HDFC Bank for long has had tremendous credibility and authenticity in handling every aspect of the scheme.
Q3. How can I add an HDFC PPF account as a beneficiary in HDFC?
If you are already an account holder of an HDFC Bank PPF account, you have to follow these steps on the online portal:
- Step 1: Go to 'Accounts'
- Step 2: 'Transact'
- Step 3: Fund transfer to own accounts
- Step 4: Transfer Funds to PPF
- Step 5: This will prompt a window to open, and you can make your payment with one click!
Q4. How can I transfer my PPF account from HDFC to SBI?
Visit the branch, procure the application form, and request a change of branch. You will need to do this despite the fact you might have submitted your new PPF opening form at the branch. It is because it is still considered a continuing account when it comes to the transfer of the account.
Q5. What is the HDFC PPF interest rate?
Despite the turbulent recessionary trend in the economy, you can still earn a whopping 7.1% interest on your HDFC PPF. The government is concerned about the welfare of its citizens. Therefore, the entire interest earned is fully tax-exempted under section 8C of the Income Tax Act, 1961.
For instance, by investing for 15-years, you can enjoy a considerable interest rate.
Q6. How much to invest in PPF?
According to PPF rules, you are entitled to make a maximum of 12 deposits in a financial year. Ideally, you can continue investing in PPF for 30-years and earn 7.1% interest. You can invest ₹1,08,000 in one go. Alternatively, you can make this investment in 12 instalments of ₹9,000 each.
Q7. Should you invest in a PPF scheme?
Well, by investing a small amount of ₹9,000 every month, you can expect to receive more than ₹26 lakh. Just bear in mind the minimum amount is ₹ 500, and the maximum amount is ₹ 1.5 lakh per annum.
Q8. Why should I invest in PPF?
You ought to invest in PPF if your goal is safety and security, together with deriving tax benefits. As the Government of India backs the scheme, it addresses safety issues in abundance.
Regarding tax benefits, investment in the PPF account is tax-free to the tune of Rs 1,50,000 as stipulated under section 80C of the Income Tax Act, 1961.