1. What is a PPF Interest Calculator?

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

Purpose: It helps investors estimate their returns from PPF investments, a popular long-term savings scheme.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( I \) — Interest amount ($)
• \( B \) — Account balance ($)
• \( i \) — Interest rate (in decimal form)

Explanation: The account balance is multiplied by the interest rate (converted from percentage to decimal) to calculate the interest earned.

3. Importance of PPF Interest Calculation

Details: Understanding potential interest helps with financial planning, comparing investment options, and tracking PPF account growth.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How often is PPF interest calculated?
A: Interest is calculated monthly but credited annually at the end of each financial year.

Q2: What's the current PPF interest rate?
A: As of 2023, it's typically 7.1% but check with your bank for current rates as they may change quarterly.

Q3: Is PPF interest compounded?
A: Yes, interest is compounded annually, though this calculator shows simple interest for the current period.

Q4: Are there tax benefits on PPF interest?
A: Yes, PPF interest is tax-exempt under Section 80C of the Income Tax Act.

Q5: What's the minimum balance required?
A: Minimum ₹500/year deposit is required to keep the account active, with maximum ₹1.5 lakh/year.