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ICICI PPF Calculator

ICICI PPF Calculator
July 11, 2022

Public Provident Fund (PPF) is a long-term savings scheme that is offered by the government of India. It is a safe investment option.

The ICICI is one of the leading banks that offer PPF accounts. In this blog post, we will provide a brief overview of PPF, PPF calculator and its advantages. And how you can take a loan on PPF.

What is PPF? The Public Provident Fund (PPF) is a long-term savings scheme that was introduced in India in 1968. The scheme is administered by the Ministry of Finance, and it is available to all Indian citizens.

The PPF is a very safe investment option, as the government of India guarantees the principal amount. The scheme offers a decent return, and it is also tax-free. ICICI is one of the leading banks in India that offer PPF accounts.

The ICICI PPF Scheme is a government-backed savings scheme that allows you to save money and get returns on your investment. It is a great investment option for those who want to save money for their future.

The scheme offers tax benefits and a high rate of interest. Other major banks that offer PPF accounts include ICICI Bank, HDFC Bankand Axis Bank.

How does PPF work?

The PPF is a 15-year scheme, and investors can choose to invest a minimum of Rs. 100 and a maximum of Rs. 1.5 lakh in a year. Investors can, however, choose to increase the investment period by 5 years.

However, it does not necessitate any significant investments. The money that is invested in the PPF account earns a fixed rate of interest, which is currently 8%. The PPF account also offers tax benefits.

The investments made in the PPF account are exempt from income tax, and the money that is withdrawn from the account is also exempt from income tax.

There are a few eligibility requirements for investing in a PPF account. An individual must be:

  1.  A resident of India

  2.  At least 18 years old

Individuals can open a PPF account in their own name, or on behalf of a minor. Non-resident Indians (NRIs) cannot invest in PPFs. Did you know that you can have more than one account under the Public Provident Fund scheme?

In fact, you can have up to three accounts – one in your name, one in the name of your spouse and one in the name of your minor child.

  • If you have more than one PPF account, the total amount you can invest in all the accounts cannot exceed Rs. 1.5 lakh in a financial year. However, the interest earned on each account is exempt from income tax.

  • While you can have multiple PPF accounts, it is important to note that you can have only one account in your own name.

    If you have more than one account in your own name, the account with the highest balance will be considered as your primary account and the other account will be treated as an irregular account.

  • If you have an irregular account, the interest accruing on that account will be taxed. So, it is advisable to maintain only one PPF account in your own name.

  • Here are a few key points to consider regarding the deposit frequency in PPF account -

  • The interest rate on the PPF is determined by the government and is revised on a quarterly basis.

  • The account holder can make a minimum deposit of Rs 100 and a maximum deposit of Rs 15,000 in a single transaction.

  • The account holder is required to make a minimum of 12 transactions (deposits) in a financial year to keep the account active.

  • The account holder can make deposits in the PPF account through any mode (cash, cheque, online or draft).

  • The interest on the PPF account is calculated on the basis of the minimum balance between the 5th and the last day of the month.

  • The interest generated on the PPF account is exempt from tax.

  • The maturity proceeds of the PPF account are taxable.

How can the ICICI PPF calculator help you?

If you are looking to invest in a PPF account, then you can use an ICICI PPF calculator to help you determine how much you need to invest. This can be a helpful tool, especially if you are new to investing in a PPF account.

By inputting your desired return and your current age, the calculator can help you determine how much you need to invest each month to reach your goal.

The ICICI PPF calculator can determine how much you need to invest each month in order to reach your goal. Please note that the calculator is for estimation purposes only, and actual returns may vary.

Also note that the calculator does not take into account any government or other incentives that may be available. The ICICI PPF calculator can help you determine how much you need to save each month to reach your goal.

Formula of PPF Calculation -

A PPF investment can yield potential returns using the formula below.

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

where,

A is the maturity amount.

P denotes the amount invested.

I = PPF interest rate

n = the investment tenure

How to open a PPF account in ICICI

It is very easy to open a PPF account in ICICI. All you need to do is to go to the nearest ICICI branch and fill out the PPF account opening form. You will need to provide your personal details like name, address, date of birth, etc.

Once your form is completed, you will need to submit it along with your KYC documents. KYC stands for 'know your customer' and it is a process to verify your identity.

After your form and KYC documents are submitted, the bank will open your PPF account, and you will be given a PPF passbook.

Advantages of using PPF Account Calculator

A PPF account calculator can be a useful tool for anyone looking to invest in a PPF account. With a PPF account calculator, you can input your desired investment amount and time frame, and see how much interest you can earn.

This can help you make a more informed decision about whether a PPF account is right for you.

  • Calculates the wealth earned: The calculator assists in calculating the wealth generated from an PPF account. It also calculates the maturity value at the conclusion of the PPF's term.

  • Rapid and precise: The calculator computes the quick results. Furthermore, the calculator reliably predicts the profit generated based on the values entered.

  • Improves financial management: Realising how one might earn from a PPF contribution enables individuals to make wise investment selections.

  • Easy Application: A calculator is an easy-to-use tool. All you need is to provide the annual deposit amount and the commitment term.

    The calculator computes the average money invested, revenue earned, and maturity sum. Furthermore, the calculator proposes options to PPF.

How to withdraw money from PPF?

Now that you have a PPF account, you might be wondering how to withdraw money from it. Here are a few things to know about withdrawing money from your PPF account:

1. You can only pull-out funds from your PPF account after it has been opened for at least 5 years.

2. You can only withdraw up to 50% of the balance in your account at the end of the 5th year, and you can only make one withdrawal per year.

3. You will need to fill out a withdrawal form and submit it to the bank.

4. The money you withdraw from your PPF account will be taxed.

Keep these things in mind when you're thinking about withdrawing money from your PPF account.

Withdrawing money from your PPF account is a pretty simple process, but there are a few things you need to know before you do it.

1. You will be taxed on the money you withdraw.
 
2. You can only pull-out funds from your PPF account if you are closing the account.

3. You can only withdraw the amount that is left in your account after you have paid all outstanding contributions and penalties.

4. You will not be able to withdraw the money if it is invested in a scheme that offers tax benefits. The funds will be transferred to the EPFO's account within 15 days of closure of the account.

5. If you are withdrawing the money because you are moving overseas, you will need to provide documentary evidence to support your claim. The money will be transferred to your new bank account within 15 days.

A premature withdrawal facility is also available on PPF investment. You can withdraw your money before the maturity date, but there are some conditions attached.

Withdrawals are allowed only after the 5th year, and only up to a maximum of 50% of the amount that was deposited in the preceding year.

So, if you have deposited Rs. 1 lakh in the previous year, you can only withdraw up to Rs. 50,000. Also, withdrawals are not allowed in the last year of the investment term.

Premature termination of PPF accounts is permitted with a 1% interest charge as penalty and only under the following criteria:

1. The account has been active for five years of its existence.

2. The investor, or their partner or dependent, has a life-threatening ailment. The relevant documentation must be presented as well.

3. Assume the account owner is attending university and requires the resources to cover fees. For that, a documentation must be presented.

4. Whenever the account owner's residence permit changes.

How to take a loan on PPF?

Are you looking to take a loan on your PPF account? Here's what you need to know.

  • Taking a loan on your PPF account is a relatively simple process. You can do it by filling out a loan application form and submitting it to your bank.

  • The loan amount that you can take on your PPF account is limited to 25% of the balance in your account. So, if you have a PPF account with a balance of Rs. 1 lakh, you can take a loan of up to Rs. 25,000.

  •  The interest rate on a PPF loan is 2% higher than the prevailing PPF interest rate. So, if the current PPF interest rate is 8%, you will be charged an interest rate of 10% on the loan amount.

  • You can repay the loan amount within 5 years from the date of disbursement.

  • Taking a loan on your PPF account is a good option if you need money for urgent expenses. It is a relatively hassle-free process, and the interest rate is also relatively low.

Frequently Asked Questions

1. Can NRI invest in PPF?

No, Non-resident Indians (NRIs) are not eligible to invest in PPF.

2. Is ICICI PPF good?

The ICICI Bank PPF account offers guaranteed long-term earnings as well as tax advantages.

3. How can I check my PPF account maturity in ICICI?

You can either visit the online portal of ICICI bank or visit the nearest branch of ICICI bank to check your account status.

4. Can I have 2 PPF accounts?

You can have only one account in your own name. However, you can open different accounts under your spouse’s name or dependent name.

5. Can we pay PPF monthly?

Yes, you can pay on a monthly basis with min of Rs.500 to maximum Rs.30,000.

6. How much to invest in PPF?

One can invest maximum up to Rs. 1.5lakhs per year.

7. Should you invest in a PPF scheme?

It is one of the greatest investing possibilities for people with the lowest risk tolerance.

8. Why should I invest in PPF?

PPFs always pay higher interest rates than depository institutions. Furthermore, the PPF yield is tax-free.

vardhan bhardwaj

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About the Author

Vardhan Bhardwaj reviews health and fitness products at ankuraggarwal.in. He has been with the company since the beginning. He started his career as an intern in Bollywood news based company named Celeb Mantra where he was managing the content editing.

He reviews fitness products including health care devices. He did his graduation in Bachelor of Commerce from Delhi University and has been living in Delhi since his birth. He likes to stay updated on general awareness and hates interrupted internet connections. He likes to stay fit thus is a fitness enthusiast.

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