Central Bank of India Public Provident Fund (PPF) scheme is one of the efficient investment methods which provides great return and income tax benefits are available under Sec 80C of the IT Act. The interest earned is also totally exempt from income tax and the amount outstanding to the credit is fully exempt from Wealth Tax. One can check their PPFs maturity value by using Central Bank PPF calculator anytime. The amount in the PPF account can be deposited in a lump sum or in a maximum of 12 instalments per year.

What is PPF and how to open it in Central Bank?

A PPF scheme is a great method of investment that offers substantial return and tax benefits. One can invest an amount as low as Rs. 500 to a maximum of Rs. 1,50,000 in one financial year. PPF account comes with a lock-in period of 15 years, however, anyone can partially withdraw after the completion of 5 years. Central Bank provides the option of opening a provident fund account via the online method by making use of the internet banking facility. The account opening form is available online and all the information can be submitted there only.

Central Bank PPF Return Calculation Formula

The formula for Central Bank PPF maturity value calculation is given below:

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

The variables used in the above PPF Maturity formula represents the following–

  • F is the Maturity of PPF
  • P is the Annual instalments
  • i is the Rate of interest
  • n is the Total number of years

How to Use the CBI PPF Calculator?

The maturity value calculation on your Central Bank PPF account takes less than a minute and can be done with a few simple steps:

  • Enter the yearly investment amount or move the slider to adjust the amount
  • Provide the time period ore tenure of the PPF investment.
  • Once you enter the above details, the PPF calculator of CBI will automatically calculate the total investment amount, total interest and the maturity value at the end of the investment period

Benefits of Using Central Bank PPF Calculator

The PPF calculator is not only easy to use and understand but has certain benefits also:

  • Helps the depositor in making a wise decision on the investment horizon, for how long should the investment be held
  • It helps you to calculate interest on both fixed and variable investment
  • Helps in planning the yearly amount to be invested

Central Bank PPF Account – FAQs

Ques. What is the minimum lock-in period for PPF account?

Ans. The minimum lock-in is 15 years and the money can be withdrawn in full after its maturity period.

Ques. Can I close my PPF account before the lock-in period?

Ans. You can only close your PPF account prematurely if you have held the account for at least five full financial years. So, before you save money in a PPF account, keep the five years cap in mind.

Ques. Can I open 2 PPF accounts under one name?

Ans. No. you cannot open another account if you are already having a PPF account in a bank, . If two accounts are opened by the depositor in his name by mistake, the second account will be considered as irregular account and will not provide any interest unless the two accounts are merged.