You can open a PPF account with ICICI Bank and apart from the regular benefits of a PPF account; you also have the benefit of accessing your PPF account online. Through ICICI Bank Internet banking, you can:

  • Fill form online for PPF account
  • View your PPF account under your ‘My Accounts’ section in the logged in section
  • Transfer funds from linked Savings Bank Account online
  • View and print mini and detailed statement online

Calculating PPF balance for Year 2013, Interest @ 8.7%, it is 1 year calculation…..we can extend further

PPF Calculation

Key Features of PPF –

The Public Provident Fund Scheme is a statutory scheme of the Central Government of India.

  • The Scheme is for 15 years.
  • The rate of interest is 8.7% compounded annually.
  • The minimum deposit is 500/ and maximum is Rs. 1,00,000/ in a financial year.
  • One deposit with a minimum amount of Rs.500/ is mandatory in each financial year.
  • The deposit can be in lumpsum or in convenient installments, not more than 12 Installments in a year or two installments in a month subject to total deposit of Rs.1,00,000/.
  • It is not necessary to make a deposit in every month of the year. The amount of deposit can be varied to suit the convenience of the account holders.
  • PPF account can be opened either in Post Office or in a Bank.
  • Deposits in PPF qualify for rebate under section 80C of Income Tax Act.
  • The interest on deposits is totally tax free.
  • Deposits are exempt from wealth tax.
  • The balance amount in PPF in PPF account is not subject to attachment under any order or decree of court in respect of any debt or liability.
  • Nomination facility available.
  • Best for long term investment.

Pros & Cons of PPF

The advantages of the Public Provident Fund – PPF (Pros)

  1. Lowest Risk than any other Government or private sector schemes in India
  2. Tax Benefits – You are eligible for 20% tax rebate. The Maximum you can invest is Rs.20,000.
  3. Great Returns – 8.7% Compounded Annually
  4. No Tax on Interest Earned – This is perhaps the great feature. Unlike other Schemes, the Tax on Interest earned from PPF is NIL,
  5. Flexibility of Investment – You can invest from Min. Rs.500 per annum to Maximum Rs.1,00,000 per Annum by this Scheme.
  6. Exempt from All Wealth Tax – The Corpus accumulated under PPF is exempt from all types of Wealth Taxes.

The Disadvantages of the Public Provident Fund – PPF (Cons)

  1. The Interest rate keeps changing –Once upon a time (In 80s), the interest rate from PPF was as high as 17% per annum. The Government has gradually reduced the interest rate to 12%, 10%, 9.5% and today it is 8% only.
  2. Long Lockin Period – The Long lockin period of 15 years is another disadvantage. Because if one have to put aside money fro 15 Full years than why to go for Fixed return Instruments? Instead of that why not go for Equity because in the long run (More than 10 years), the risk from equity becomes almost ZERO.
  3. Lack of Liquidity – Your money is stuck for years on end. It is not as easy as selling some shares or mutual fund units.
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