1. What is a PPF One Time Investment Calculator?

Definition: This calculator estimates the maturity amount for a one-time investment in a Public Provident Fund (PPF) account.

Purpose: It helps investors understand how their lump sum PPF investment will grow over time with compound interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( M \) — Maturity amount ($)
• \( P \) — Principal investment ($)
• \( i \) — Annual interest rate (as decimal)
• \( n \) — Investment period (years)

Explanation: The principal amount grows exponentially based on the interest rate and investment duration.

3. Importance of PPF Investment Calculation

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

4. Using the Calculator

Tips: Enter the lump sum 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, but this may change quarterly.

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

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

Q4: What is the maximum amount I can invest?
A: The maximum annual investment limit is $150,000 (or equivalent in local currency).

Q5: Are PPF returns taxable?
A: PPF enjoys EEE (Exempt-Exempt-Exempt) status - contributions, interest, and maturity are all tax-free.