YES Bank PPF (Public Provident Fund) Calculator

The most important step towards generating wealth is gathering savings. There are a lot of savings account options that can help you do that; however, you should look for options that can ensure significant risk-free returns on investment. PPF accounts are the most common options that come to mind. The Yes Bank PPF scheme is the most effective tool, which provides significant returns with a plethora of tax benefits. An applicant can invest a minimum of Rs. 500 and a maximum of Rs. 1,50,000 in a fiscal year. You can always use the Yes Bank PPF calculator to determine the returns you can gain from an investment amount for various tenures.

What is the Public Provident Fund?

PPF, also known as the Public Provident Fund, is a long-term savings investment scheme made available by the Ministry of Finance in 1968. The main aim of the scheme is to mobilise the small savings of an individual through investment options that offer reasonable returns and tax benefits. It is a tool backed by the Central Government on which interest is accrued regularly. The deposits made in this investment scheme are also eligible for tax deductions per Section 80C of the Income Tax Act.

How Does Yes Bank PPF Calculator Work?

One can easily calculate the amount one will receive upon maturity using the Yes Bank PPF calculator. Given below are the steps to use the calculator:

• Enter the yearly investment amount, or move the slider to choose the amount
• Enter the investment period for the PPF
• Once you have entered all the details, the calculator will automatically compute the total investment amount, interest accrued, and amount during maturity 

Yes Bank Maturity Value Calculation

You can always use the Yes Bank PPF calculator to know the final maturity value for your investment in a PPF account. However, if you wish to know, how to calculate the maturity value, you can use the formula given below:

M = P [ ( { (1 + t) ^ n } – 1 ) / i ] x ( 1 + i )

In this formula,

• M stands for the maturity value
• P denotes the annual investment payments
• I is the applicable interest rate
• N is the investment tenure

Example: Let’s assume Mr Seymour Butts invests Rs. 1 lakh annually in the PPF investment scheme. Let’s substitute this value in the formula given above:

M = ₹ 1 lakh [ ( { (1 + 7%) ^ 15 } – 1 ) / 7% ] x (1 + 0.07)

M = ₹ 27, 12, 139

Benefits of Yes Bank PPF Calculator

Using the Yes Bank PPF Calculator can make calculating the returns from your PPF investment very easy and hassle-free. However, there are numerous other benefits, following are some of the other advantages of using this online calculator:

• If you have an investment objective in mind, you can use this calculator to adjust the inputs according to your needs to see what your monthly contribution should be to achieve this goal 
• The formula to calculate PPF maturity is very complicated. Manually calculating the returns can be very prone to errors and miscalculations. Further, it can be especially difficult to determine how your annual contribution will impact the final maturity amount
• Using the online calculator can help the user to calculate the yearly taxes. Once you determine the annual amount you have to contribute, you can calculate how many deductions you are eligible for as per Section 80C of the Income Tax Act. 
• It helps the investor make an informed decision about how long they need to hold an investment to fulfil their objectives

Yes Bank Public Provident Fund Calculator Formula

The Yes Bank PPF calculator uses the same formula used for determining the future value of an annuity. In other words, this calculates the future value of an investment, based on the contribution you make towards it and the prevailing interest rate. Given below is the formula used by the calculator to determine the returns:

M = P [ ( { (1 + t) ^ n } – 1 ) / i ] x ( 1 + i )

In this formula,

• M is the final maturity value
• P is the annual contribution that is required to be made 
• i is the applicable interest rate
• n is the investment tenure

The component after P in the above formula is the annuity component, which when multiplied by the annual contribution is equal to the final maturity value. 

Yes Bank PPF Investment Schedule

To understand the concept of this investment scheme a little better, let’s take a look at a PPF investment schedule:

Let’s assume that an investor makes an annual investment of Rs 1.1 lakh and withdraws the permissible amount. For this illustration, we are assuming that the applicable interest rate is 7.90%.

Years	Opening PPF Balance	Contribution to PPF	Interest Accrued	Closing PPF Balance	Loan Availed	Withdrawal
1	Rs. 0	Rs. 110,000	Rs. 8,690	Rs. 118,690	Rs. 0	Rs. 0
2	Rs. 118,690	Rs. 110,000	Rs. 18,067	Rs. 246,757	Rs. 0	Rs. 0
3	Rs. 246,757	Rs. 110,000	Rs. 28,184	Rs. 384,941	Rs. 29,673	Rs. 0
4	Rs. 384,941	Rs. 110,000	Rs. 39,100	Rs. 534,041	Rs. 61,689	Rs. 0
5	Rs. 534,041	Rs. 110,000	Rs. 50,879	Rs. 694,920	Rs. 96,235	Rs. 0
6	Rs. 694,920	Rs. 110,000	Rs. 63,589	Rs. 868,509	Rs. 133,510	Rs. 0
7	Rs. 868,509	Rs. 110,000	Rs. 77,302	Rs. 1,055,811	Rs. 0	Rs. 192,471
8	Rs. 1,055,811	Rs. 110,000	Rs. 92,099	Rs. 1,257,910	Rs. 0	Rs. 267,021
9	Rs. 1,257,910	Rs. 110,000	Rs. 108,065	Rs. 1,475,975	Rs. 0	Rs. 347,460
10	Rs. 1,475,975	Rs. 110,000	Rs. 125,292	Rs. 1,711,267	Rs. 0	Rs. 434,255
11	Rs. 1,711,267	Rs. 110,000	Rs. 143,880	Rs. 1,965,147	Rs. 0	Rs. 527,906
12	Rs. 1,965,147	Rs. 110,000	Rs. 163,937	Rs. 2,239,084	Rs. 0	Rs. 628,955
13	Rs. 2,239,084	Rs. 110,000	Rs. 185,578	Rs. 2,534,662	Rs. 0	Rs. 737,988
14	Rs. 2,534,662	Rs. 110,000	Rs. 208,928	Rs. 2,853,590	Rs. 0	Rs. 855,634
15	Rs. 2,853,590	Rs. 110,000	Rs. 234,124	Rs. 3,197,714	Rs. 0	Rs. 982,574

Yes Bank PPF Rates

The table below displays the PPF rates and the variation over the past few years:

Steps to Open a PPF Account in Yes Bank

Currently, Yes Bank does not provide its customers with the facility of making an online application for PPF accounts. However, you can approach the bank and complete the application by submitting a form along with supporting documents. However, if you are an existing savings account customer and have an active internet banking account, you can download the application form and submit the same at your nearest branch.