We have given the necessary information about the rules of opening PPF account, limit of depositing money and withdrawal of money, etc., in detail in our previous article. Some of our readers wanted to know that how much money will be returned by depositing 1000 rupees every month in PPF account? Similarly, some other people wanted to know that how much money will be returned by depositing 2000 rupees or 3000 rupees every month in the PPF account? Similarly, some people had asked that how much will be available for depositing 5000 or 10000 rupees every month in the PPF account.
In this article we will answer these questions of yours. Along with this, we will also share some important things related to depositing and withdrawing money. How much amount can be get on depositing 1000, 2000, 3000, 5000, 10000 per month in PPF Account?
How much will you get on depositing 1000 rupees every month?
- In PPF, depositing Rs 1000 every month, will be deposited in a year – Rs 12,000
- By depositing 1000 every month for 15 years, your total deposit will be Rs. 1,80,000
- On getting interest at the rate of 7.1% per annum, the total interest in 15 years will be-Rs 1,35,568
- Your total deposit (Rs.180,000) and its interest (Rs 1,35,568The total is Rs.3,15,568.
That is, on depositing 1000 rupees every month in the PPF account, on the maturity of 15 years, you will get back a total of 3 lakh 15 thousand, 568 rupees. (See the table below to understand the year-on-year growth of your money)
How much will you get on depositing Rs 2,000 every month
- On depositing 2000 rupees every month, 24000 rupees will be deposited in a year
- On depositing 2000 every month for 15 years, the total deposit will be Rs.360,000
- On getting an interest of 7.1% per annum, the total interest in 15 years will be-271,136 rupees
- Your total deposit of 15 years (360,000) and its interest (Rs 271,136) is totaled – Rs 631136
That is, on depositing 2000 rupees every month in the PPF account, on the maturity of 15 years, you will get back a total of 6 lakh 31 thousand, 136 rupees. (see table below)
How much will you get on depositing 3000 rupees every month
Things to know about PPF account
First of all, let us make it clear that PPF account is a small savings scheme of the Government of India. The Government of India decides all the rules regarding its deposit, interest, tax exemption, maturity and withdrawal of money. Therefore, whether you open a PPF account in a bank or in a post office, its interest rate and rules remain the same everywhere.
Any Indian citizen can open PPF account
Any adult Indian citizen can open a PPF account for himself. In any bank or post office, a person can open only one PPF account in his name. This means that if you have already opened a PPF account somewhere, then you cannot open another PPF account in your name in any other bank or post office. You cannot even open a shared PPF account with any other person.
For a child or a mentally challenged person, a PPF account can be opened on behalf of his guardian. Till the child becomes an adult, the right to operate his PPF account rests with the guardian. Once the child becomes an adult, fresh KYC documents (documents related to identity, and address proof) will have to be submitted and the PPF account will be in his name.
PPF account can be opened in bank or post office
You can open a PPF account in any bank or post office as per your convenience, but keep in mind that you do not get cash back, but it is transferred to any savings account opened in your name. Therefore, try to open your PPF account in the same bank or post office in which you already have a savings account open. This will help you to operate both your types of accounts.
It is mandatory to deposit at least Rs 500 every year
You can open a PPF account by depositing at least Rs 500. Even after that, it is mandatory to deposit at least Rs 500 every year. If you deposit less than Rs 500 in any year, then your account will be put in the category of default account. That means it will be closed. To make it active again, you will have to deposit a penalty at the rate of Rs 50 per year and the amount that remains outstanding in the minimum deposit will also have to be deposited together.
You can deposit money whenever you want and as many times as you want during the year. But you cannot deposit less than Rs 50 at any one time. Above this in multiples of Rs 50, you can deposit as much as you like.
You can deposit a maximum of Rs 1.50 lakh every year
In a PPF account, you can deposit up to a maximum of Rs 1.50 lakh during any one financial year. If ever you deposit more than this, that money will be returned to you. Even if you have opened a PPF account in the name of any of your children, making yourself a guardian, then the account of that child and your PPF account together cannot be deposited more than Rs 1.50 lakh during a year. .
Actually, in case of maximum deposit, both your PPF account and the PPF account in which you become a guardian are considered as one account. Therefore, taking the two together, the maximum deposit limit is also assumed to be 1.50 lakhs.
When that child attains the age of 18 years, his PPF account is completely in his name, then his account will be considered as separate from your account. Then again the limit of deposit in both the accounts will also be Rs 1.50-1.50 lakh separately.
Interest is available on deposits in the account at the rate of 7.1% per annum
At present, interest is available at the rate of 7.1% in PPF account. But, keep in mind that the government announces a new interest rate for the PPF account every quarter. However, for the last several quarters, the government has not made any change in the interest rates of PPF account. Since April 2020, the government has maintained the interest rate of 7.1% on PPF account. In any bank or post office, you will get the same interest on PPF account.
Account remains active for 15 years, can be extended further
PPF account is for 15 years. Till then you can keep depositing money little by little as per your convenience. On completion of 15 years, your entire deposit plus the entire interest earned thereon is refunded. However, even after the maturity of 15 years, you can carry forward the account for the next 5 years.
You can do this 5 year account extension even while you keep depositing money and you can keep it running by stopping depositing money. Similarly, you can do the account extension of 5-5 years as many times as you want.
PPF money can be withdrawn even earlier in special circumstances
On the death of a person holding a PPF account, his account can be closed. Apart from this, in certain circumstances, the PPF account can be closed even before the maturity of 15 years. You can get this facility after 5 years of account opening. Such special circumstances are as follows-
- In case of fatal illness of the account holder
- For higher education of the account holder or his children
- When the account holder acquires citizenship of another country
Deposit, interest and maturity, all three get tax exemption
The money you deposit in a PPF account is tax exempt under section 80C of the Income Tax Act every year. It is noteworthy that under Section 80C of the Income Tax Act, tax exemption can be taken on Rs 1.50 lakh every year for certain types of investments and expenses. To understand in detail, see our article section – What is 80C? How does this save tax? There is no tax on the interest earned on the deposits of PPF account and also on the maturity amount.