1. What is ICICI PPF Account Interest Calculator?

Definition: This calculator computes the interest earned on an ICICI Public Provident Fund (PPF) account based on the current balance and interest rate.

Purpose: It helps PPF account holders estimate their annual interest earnings and plan their long-term savings.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Annual interest earned ($)
• Balance — Current PPF account balance ($)
• i — Annual interest rate (7.1% = 0.071 decimal)

Explanation: The account balance is multiplied by the interest rate (in decimal form) to calculate the annual interest.

3. Importance of PPF Interest Calculation

Details: Understanding your PPF interest helps in financial planning, tax calculations, and comparing with other investment options.

4. Using the Calculator

Tips: Enter your current PPF balance and the interest rate (default 7.1% as of current rates). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current ICICI 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 the account at the end of each financial year.

Q3: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 80C of the Income Tax Act.

Q4: When is the best time to deposit in PPF?
A: Depositing before the 5th of each month ensures you earn interest for that entire month.

Q5: What's the maximum I can deposit in PPF annually?
A: The minimum is $500 and maximum is $150,000 per financial year.