1. What is a PPF Calculator with Monthly Deposits?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account when making regular monthly contributions.

Purpose: It helps investors plan their long-term savings by projecting the future value of their monthly PPF investments.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount at the end of investment period ($)
• \( Monthly \) — Fixed monthly deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period in years
• \( m \) — Month counter (from 1 to 12n)

Explanation: Each monthly deposit earns compound interest for the remaining months until maturity.

3. Importance of PPF Calculation

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

4. Using the Calculator

Tips: Enter your planned monthly deposit, current PPF interest rate (default 7.1%), and investment period in years (default 15). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, it's typically around 7.1%, but check with your bank for current rates as they change quarterly.

Q2: What's the minimum investment period for PPF?
A: PPF has a lock-in period of 15 years, which can be extended in blocks of 5 years.

Q3: How many monthly deposits can I make per year?
A: You must make at least 12 deposits annually (one per month), with a maximum of 12 deposits per year.

Q4: Are PPF returns tax-free?
A: Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) status under Indian tax laws.

Q5: Can I increase my monthly deposits later?
A: Yes, you can vary your monthly deposits between the minimum and maximum limits.