1. What is a Post Office PPF Calculator?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account 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:

• \( M \) — Maturity value ($)
• \( P \) — Annual deposit ($)
• \( i \) — Annual interest rate (decimal)
• \( n \) — Investment period (years)

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

3. Importance of PPF Calculation

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

4. Using the Calculator

Tips: Enter the annual deposit amount, current 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 decimal), but this may change quarterly.

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

Q3: How often is interest compounded in PPF?
A: Interest is compounded annually but credited at the end of the financial year.

Q4: What's the maximum annual deposit limit?
A: The maximum annual deposit is $150,000 (or equivalent in local currency).

Q5: Are partial withdrawals allowed?
A: Yes, partial withdrawals are allowed from the 7th financial year onward.