1. What is HDFC PPF Interest Calculator?

Definition: This calculator computes the interest earned on your Public Provident Fund (PPF) account with HDFC based on your current balance and the prevailing interest rate.

Purpose: It helps investors estimate their PPF returns and plan their long-term savings strategy.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Amount earned ($)
• Balance — Current PPF account balance ($)
• i — Annual interest rate (in decimal, e.g., 7.1% = 0.071)

Note: Actual PPF interest is calculated monthly but credited annually. This calculator shows annual interest.

3. Importance of PPF Interest Calculation

Details: Understanding your PPF returns helps in financial planning, comparing investment options, and tracking your retirement savings growth.

4. Using the Calculator

Tips: Enter your current PPF balance and the interest rate (default 7.1%). 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: How often is PPF interest calculated?
A: Interest is calculated monthly but credited to your account at the end of each financial year.

Q3: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q4: What's the minimum and maximum PPF investment?
A: Minimum ₹500/year, maximum ₹1.5 lakh/year (as of 2023).

Q5: Can I change the interest rate in the calculator?
A: Yes, though the current rate is 7.1%, you can adjust it for future projections.