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ICICI Bank in India provides a PPF Scheme which offers an attractive 8.7% PA. I was trying to figure out the interest that I could earn by using this PPF calculator of theirs.

There are a couple of things that I don't understand (I'm a newbie so some of the terms and things being asked by the calculator are really confusing)

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QUESTIONS

Why is MY age important ? Does it affect the total interest I earn in any way ?

What does "Subscription Option" mean ? It has values like Quarterly, Yearly, Monthly etc. Can someone please explain this to me ?

Lastly, I know this sounds really stupid but this is guaranteed returns right ? There's no risk involved here unlike Mutual Funds, Equity Investments.

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Why is MY age important ? Does it affect the total interest I earn in any way ?

Nope age is not relevant.

What does "Subscription Option" mean ? It has values like Quarterly, Yearly, Monthly etc. Can someone please explain this to me ?

Will you deposit money every month or year.

Lastly, I know this sounds really stupid but this is guaranteed returns right ? There's no risk involved here unlike Mutual Funds, Equity Investments

The return is garunteed by Govt. The rates are linked to small saving and change every year.

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  • so if my age isn't relevant, any idea why they're asking it ? If the amount invested in 15000, then the subscription period determines how often I pay the installments for that amount ? Have I understood that properly ? – Dhiwakar Ravikumar Mar 12 '16 at 13:49
  • @DhiwakarRavikumar To capture demographics, plus highlight that beyond a certain age, you can't opt into PPF. – Dheer Mar 12 '16 at 15:52

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