Post office PPF is one of the best options for people who want to invest their money in the Public Provident Fund. But before investing in PPF in the post office, investors should know everything about the Post office PPF Interest rate.
The PPF interest in post office 2022 is set by the government of India every quarter. It is not linked to market movements in any case. It provides guaranteed returns to its investors.
What is PPF Interest rate for Post office 2022?
Post office 2022 PPF Interest rate is the rate at which the investor will get his/her returns at the end of every year. PPF Post office interest rate is a compound interest rate which means investors get the interest rate on the returns as well along with the principal amount invested.
History of PPF Post office Interest rate
Though the PPF interest in post office 2022 is determined by the government, by checking the previous year Post office PPF Interest rate. Given below is the table with PPF Interest rate in Post office for some previous years, using it, investors can get an idea of what the average interest rate he/she will get.
| Period | Interest Rate |
| April 2020 to Present | 7.1% |
| July 2019 to March 2020 | 7.9% |
| January 2019 to June 2019 | 8.0% |
| July 2018 to December 2018 | 7.8% |
| April 2018 to June 2018 | 7.9% |
By analyzing this table, we can say that the PPF Interest rate in Post offices broadly varies between 7 to 8% which is a very good interest rate as compared to what investors get in FDs nowadays.
How to calculate returns using Post Office PPF Interest rate?
Based on the PPF Interest rate of post offices, investors can largely calculate the returns they will get after the closing of PPF account. To calculate this, there is a simple formula as mentioned below with which investors can compare the returns with other investment plans.
Post Office PPF Calculation Formula:
$latex A = P\left [ \frac{\left ( 1+r \right )^{n}+1}{r} \right ]$
Here, A = Total amount which will investor get after maturity period
P = Amount which investor invests in PPF every year
r = Post Office PPF Interest rate
n = Number of years/ Maturity Period
Post Office PPF Interest rate in special cases
The PPF Interest rate in Post office can change in some cases as mentioned by the government which are mentioned below:
Post Office PPF Interest rate for Premature Withdrawal
All the investors have the option to partially withdraw PPF money after completion of 5 financial years of investing. After this time the investor can withdraw upto 50% of the invested money. But as a result of premature withdrawal, 1% of the interest rate is deducted on the withdrawn amount.
For example if the interest rate is 7.1%, then only 6.1% interest rate will be given on the amount which is withdrawn by the investor.
Post Office PPF Interest rate during Maturity Extension
After the maturity period for the PPF has been reached, the investor can extend the maturity period in blocks of 5 years.
If the investor extends the maturity with a new contribution, then the investor will get the interest rate of that particular quarter on the invested money. Whereas in case the investor chooses extension without new contribution then he/she will get the Post Office PPF Interest rate on the money as it was at the end of the 15th year.
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