1. What is a PPF Account 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:

• \( Maturity \) — Final amount at the end of investment period ($)
• \( P \) — Annual deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period in years (minimum 15 for PPF)

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

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% per annum, compounded yearly.

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

Q3: Can I change the annual deposit amount?
A: Yes, but the minimum is $500 and maximum is $150,000 per financial year.

Q4: Are PPF returns taxable?
A: No, PPF enjoys EEE (Exempt-Exempt-Exempt) status - contributions, interest, and maturity are all tax-free.

Q5: Can I make partial withdrawals?
A: Yes, partial withdrawals are allowed from the 7th financial year onward, subject to conditions.