1. What is a PPF Calculator with Monthly Deposits?

Definition: This calculator estimates the maturity amount 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 PPF investments with monthly deposits.

2. How Does the Calculator Work?

The calculator uses the future value of an annuity due formula:

Where:

• \( M \) — Maturity amount ($)
• \( P \) — Monthly deposit amount ($)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of deposits (years × 12)

Explanation: The formula accounts for compound interest on each monthly deposit for its respective investment period.

3. Importance of PPF Calculations

Details: PPF is a popular long-term savings scheme with tax benefits. Accurate projections help in 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 years, the PPF lock-in period).

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 but calculated monthly.

Q2: What's the minimum and maximum investment in PPF?
A: Minimum $500 annually, maximum $150,000 annually. Monthly deposits should be between ~$42 to $12,500.

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

Q4: Can I extend my PPF account beyond 15 years?
A: Yes, in blocks of 5 years after the initial 15-year period.

Q5: Are PPF returns taxable?
A: No, PPF enjoys EEE (Exempt-Exempt-Exempt) status - contributions, interest, and withdrawals are all tax-free.