1. What is a PPF Interest Rate Calculator?

Definition: This calculator estimates the interest earned on a Public Provident Fund (PPF) account with State Bank of India based on the account balance and current interest rate.

Purpose: It helps investors plan their PPF investments by showing expected returns.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{Interest} \) — Annual interest earned ($)
• \( \text{Balance} \) — PPF account balance ($)
• \( i \) — Interest rate in decimal (7.1% = 0.071)

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

3. Importance of PPF Interest Calculation

Details: Understanding potential returns helps with financial planning and comparing PPF with other investment options.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the current SBI PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% compounded annually.

Q2: How often is PPF interest calculated?
A: Interest is calculated monthly but credited annually at the end of the financial year.

Q3: Is the interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q4: What's the minimum balance required?
A: Minimum ₹500 per year is required to keep the account active.

Q5: Can I change the interest rate?
A: The rate is set by the government and changes quarterly, but you can modify it here for hypothetical calculations.