1. What is a PPF Calculator With Extension?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) account when extended for an additional 5-year period.

Purpose: It helps investors plan their PPF investments by projecting the future value of their account after extension.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount after extension ($)
• \( Initial \) — Initial balance at extension time ($)
• \( i \) — Annual interest rate (decimal)
• \( New\ Deposits \) — Additional deposits during extension ($)

Explanation: The initial amount compounds for 5 years at the given interest rate, and new deposits are added without compounding.

3. Importance of PPF Extension Calculation

Details: PPF accounts can be extended in blocks of 5 years after the initial 15-year period. Calculating the potential growth helps in financial planning.

4. Using the Calculator

Tips: Enter the initial PPF balance at extension time, current interest rate (default 7.1%), and any planned additional deposits during the extension period.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the rate is 7.1% (0.071 decimal), but check with your bank for current rates.

Q2: Can I make partial withdrawals during extension?
A: Yes, subject to PPF rules (typically one withdrawal per year after 7 years).

Q3: Are new deposits mandatory during extension?
A: No, but they can significantly increase your final maturity amount.

Q4: How many times can I extend my PPF?
A: You can extend indefinitely in 5-year blocks.

Q5: Is the interest compounded annually?
A: Yes, PPF interest is compounded annually and credited at the end of each financial year.