PPF Account for 20 Years

PPF Account is a long-term savings account that is targeted as a retirement tool to make the old age of an individual fulfilled monetary wise. PPF stands for Public Provident Fund, which can be opened by anyone who wants to save some money for future use. PPF Account is the best account as it gives very good returns on the investment made. Unlike other PF account that can only be opened by the employee or employer, the PPF account can be opened by anyone due to this you can even open a PPF Account for your kids.

A PPF Account provides very attractive interest on the investment. Current interest rate on PPF account is 8% as of 2019-20. On every quarters of the financial year the interest rate are announced. PPF Account is best when the funds are saved for long-term. In this article, we will discuss how much can we get the returns with the help of PPF calculator for 20 Year.

PPF Calculation for 20 Years

Before calculating the PPF Account for 20 Years we should assume some points to make the calculation error free-

  • An amount of 75,000/- is deposited at the beginning of every financial year
  • The interest rate is 8% calculated on compound bases annually.
  • Even though the minimum tenure for the PPF account is 15 years we will still use the PPF account for 20 years

Before the calculation we must assume some points to make the calculation error free-

  • Every month before the 5th of the month an amount of Rs.6250/- will be deposited
  • The interest rate is 8% calculated on compound bases annually.
  • Even though the minimum tenure for the PPF account is 15 years we will still use the PPF account for 20 years
  • The interest rate is calculated on monthly bases by reflect in the account by the end of the financial year.

Conclusion

As you can see on calculating the PPF account on both monthly and yearly the maturity amount on both vary a lot. The maturity amount on Monthly and Yearly are Rs. 21,99,322.80/- and 35,80,860.05/- respectively therefore, depositing on yearly bases will make your PPF Account savings much better than depositing the amount on yearly bases. Other major thing that has to keep in mind in order to make the best out of the investment is that you should deposit the money before the beginning of the financial year to get interest for that month.