Canara Bank PPF calculator

What is Canara Bank PPF Calculator?

The Canara Bank PPF calculator is a useful tool for estimating PPF returns. Determining the potential returns of a Canara Bank PPF account is possible by entering variables such as the investment frequency, investment amount and duration. The calculator computes the potential returns basis the inputs provided. 

Additionally, this calculator helps gain insight into the potential wealth gain through PPF investments. The calculator automatically computes the maturity amount gained from the PPF investment.

How does the Canara Bank PPF Calculator work?

The Canara Bank PPF calculator essentially computes the maturity amount based on the entered variables. The important parameters it uses for the calculation are the investment frequency, investment amount, and duration.

The interest rate is auto-populated in the calculator. The investment period is set at 15 years, which is the minimum investment period. After all the values are entered, the calculator calculates the maturity amount and displays instant results instantly.

How to use a Canara Bank PPF Calculator?

You can follow the easy steps mentioned below to use the Canara Bank PPF calculator and calculate expected returns from post office PPF investments accurately:

• Select the frequency of investment: The frequency of your investment will influence your maturity value. Ideally, select the ‘Monthly’ option if you are salaried for more convenient investment and accurate results.
• Enter the monthly PPF investment: It is the amount you wish to invest in the PPF account. You could input a monthly, quarterly, semi-annual, or annual amount. Also, ensure that your investment amount is not more than Rs 12,500 per month or Rs 1.5 lakh a year.
• Interest rate: The current interest rate for PPF investment will be auto-populated. Thus, you do not need to enter the interest rate. 
• Select the investment duration: It is the time you will continue your PPF investment. The minimum time available is 15 years, and you have the option to extend the term in batches of five years after that. The PPF calculator assumes that you will be investing the same amount till the time of maturity.
• Check the future value:  Once you enter all the above details, our calculator will automatically show the maturity amount.

What Is the Canara Bank PPF Calculator Formula?

The Canara Bank PPF calculator formula is as follows:

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

In which:

• M=the maturity value of the PPF
• P=yearly instalments
• i= the interest rate
• n=the duration in years

How to calculate expected returns from Canara Bank PPF? 

The following formula is applied to determine the expected returns  of a PPF investment at maturity:

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

Now, suppose you invest Rs 50,000 per year in Canara PPF for 15 years at the current interest rate of 7.1%. 

The maturity amount would be as follows:

M = 50,000[({(1+7.1) ^15}-1)/7.1] 

Thus, the maturity value of your Canara PPF is Rs 13,56,070.

Example of Canara Bank PPF Calculation

You can invest a maximum of up to 1.5 lakh per financial year in a post office PPF account. If you invest Rs 1 lakh a year at a 7.1% interest rate, the contribution during that period will be Rs 15,00,000.

The scheme provides compound interest, which will be Rs 12,12,139 in 15 years, which is the maximum duration one can invest. After the completion of the PPF scheme, the maturity amount will stand at Rs 27,12,139.

Suppose you extend the scheme for another 5 years, your investment will rise to Rs 20,00,000. The interest received will be Rs 24,38,859, and the maturity value will be Rs 44,38,859.

Canara Bank PPF interest rates 

The interest on PPF  is calculated based on the minimum balance in an investor’s account, usually between the fifth and end of the month. The Central government revises the PPF interest rate every quarter. Over the past few years, the return has been experiencing a dip. The current Canara Bank PPF interest rate is 7.1% per annum for 1 April - 30 June 2024.

Benefits of using a Canara Bank PPF Calculator

The Canara Bank PPF calculator provides the following benefits:

• You can estimate the returns on your investment in a Canara Bank PPF account. This ensures proper planning of your investment amount and length.
• You can analyse different investment amounts to see how they influence the returns. Determining the suitable investment amount is possible this way, thus helping to maximise your earnings.
• It saves you time and effort by performing complex calculations and displays accurate results in seconds.
• An accurate estimate of the returns to be expected at maturity can be gained by entering basic inputs such as investment amount and duration.

Tax Benefits of Canara Bank PPF Investments

The PPF has been designed to act as a savings fund that provides tax savings to account holders. PPF is one of those investment tools that offer the benefit of the triple tax exemptions - exempt-exempt-exempt (EEE) category. This means that an account holder can get tax benefits at the time of investment, interest accrual, and withdrawal.

The interest earned on the PPF account is tax-exempt, and the contributions made towards this account are eligible for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income-Tax Act (ITA), 1961.