1. What is a PPF Calculator for SBI with Monthly Deposits?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account with State Bank of India (SBI) when making regular monthly deposits.

Purpose: It helps investors plan their PPF investments by projecting the future value based on monthly contributions and current interest rates.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount at maturity ($)
• \( Sum\ Monthly \) — Monthly deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g. 0.071 for 7.1%)
• \( n \) — Investment period in years
• \( m \) — Starting month (1-12)

Explanation: The formula compounds monthly deposits at the PPF interest rate, accounting for the exact number of months in the investment period.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme in India 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%), investment period in years (default 15), and starting month (1-12). All values must be valid.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate at SBI?
A: As of 2023, the PPF interest rate is 7.1% per annum, but this may change quarterly.

Q2: What's the minimum and maximum investment period?
A: PPF has a minimum tenure of 15 years, extendable in blocks of 5 years.

Q3: Is there a maximum yearly deposit limit?
A: Yes, the maximum annual deposit is ₹1.5 lakh (not reflected in this calculator).

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

Q5: Can I change my monthly deposit amount?
A: Yes, you can vary monthly deposits, but this calculator assumes a fixed amount.