1. What is a PPF For Child Calculator?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) investment made for a child's future.

Purpose: It helps parents and guardians plan long-term savings for their children's education or other future needs.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

Where:

• \( M \) — Maturity amount ($)
• \( P \) — Annual deposit ($)
• \( i \) — Interest rate (as decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period (years)

Explanation: The formula accounts for annual compounding of interest on regular deposits.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme with tax benefits. Accurate calculations help in financial planning for a child's future.

4. Using the Calculator

Tips: Enter the annual deposit amount, 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: Why is the formula different from simple compound interest?
A: PPF uses compounding on annual deposits, not just a lump sum, requiring this special formula.

Q2: What's the current PPF interest rate?
A: As of 2023, it's 7.1% (0.071 decimal), but check current rates as they change quarterly.

Q3: What's the minimum investment period?
A: PPF has a 15-year lock-in period, extendable in 5-year blocks.

Q4: Can I increase deposits over time?
A: This calculator assumes fixed annual deposits. For variable deposits, use a more advanced calculator.

Q5: Are there tax benefits?
A: Yes, PPF offers EEE (Exempt-Exempt-Exempt) tax status in many countries.