1. What is a PNB PPF Interest Calculator?

Definition: This calculator computes the interest earned on a Punjab National Bank (PNB) Public Provident Fund (PPF) account based on the account balance and current interest rate.

Purpose: It helps investors estimate their PPF interest earnings for financial planning.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Annual interest earned ($)
• Balance — PPF account balance ($)
• i — Current PPF interest rate (as decimal, default 0.071 for 7.1%)

Explanation: The interest is calculated by multiplying the account balance by the current PPF interest rate.

3. Importance of PPF Interest Calculation

Details: Accurate interest calculation helps in financial planning, tax estimation, and comparing investment options.

4. Using the Calculator

Tips: Enter your PPF account balance and the current interest rate (default 0.071 for 7.1%). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PNB PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% (0.071 decimal), but check PNB's website for updates.

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

Q3: Is PPF interest compounded?
A: Yes, PPF interest is compounded annually, though this calculator shows simple annual interest.

Q4: Is PPF interest taxable?
A: No, PPF interest is tax-free under Section 10 of the Income Tax Act.

Q5: What's the minimum balance for PPF?
A: Minimum ₹500/year deposit is required to keep the account active, but there's no minimum balance requirement.