In other words, the total amount deposited in your own PPF account and the account of your minor child can’t exceed Rs 100,000 in a Financial Year.
The only disadvantage with Public Provident Fund is that the money gets locked for a period of 15 years. But that can also be turned into an advantage if you open the account early. That is, say you opened the account when you started your career. Now by the time your son or daughter are ready for marriage, your PPF account would have matured thereby providing you very useful and tax free savings.
To determine PPF returns and maturity value after different time periods use following PPF calculator.
PPF interest rate calculator
How is interest on PPF calculated in a financial year? Public Provident Fund interest calculation is a bit complicated. Interest is calculated on monthly basis but compounded on annual basis only. Also no interest is paid for a particular month if the amount is deposited after 5th of the month.
Use the calculator below to know the interest income earned from your PPF account in a financial year.
Click here to go to PPF Interest Calculator