1. What is a Bank of India PPF Calculator?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account with Bank of India based on annual deposits, interest rate, and investment period.

Purpose: It helps investors plan their long-term savings and understand the power of compounding in PPF accounts.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount at the end of investment period
• \( P \) — Annual deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period in years (minimum 15 for PPF)

Explanation: The formula accounts for annual compounding of interest on regular deposits made at the beginning of each year.

3. Importance of PPF Investment

Details: PPF is a government-backed, tax-advantaged savings scheme with attractive interest rates and long-term wealth creation potential.

4. Using the Calculator

Tips: Enter the annual deposit amount, current PPF interest rate (default 7.1%), and investment period (default 15 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% per annum, compounded yearly.

Q2: What is the minimum investment period for PPF?
A: The minimum tenure is 15 years, extendable in blocks of 5 years.

Q3: Can I change my annual deposit amount?
A: Yes, you can deposit any amount between $500 and $150,000 annually.

Q4: Are PPF returns tax-free?
A: Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) tax status under most tax regimes.

Q5: How often is interest calculated?
A: Interest is calculated monthly but credited annually at the end of the financial year.