1. What is HDFC PPF Account Calculator?

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

Purpose: It helps investors plan their long-term savings by projecting the PPF account value at maturity.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Maturity amount ($)
• \( P \) — Annual deposit ($)
• \( i \) — Interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period (years)

Explanation: The formula accounts for annual compounding of interest on PPF deposits.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme in India with tax benefits. Accurate calculations help in financial planning.

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% (0.071 in decimal), but this may change quarterly.

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

Q3: Is the interest compounded annually?
A: Yes, PPF interest is compounded annually and credited at the end of each financial year.

Q4: What are the tax benefits of PPF?
A: PPF offers EEE (Exempt-Exempt-Exempt) tax benefits under Section 80C of the Income Tax Act.

Q5: Can I change my annual deposit amount?
A: Yes, you can vary your annual deposits between the minimum ($500) and maximum ($150,000) limits.