1. What is a PPF Interest Calculator for SBI?

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 PPF account holders project their interest earnings and plan their long-term savings strategy.

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, e.g., 0.071 for 7.1%)

Explanation: The account balance is multiplied by the interest rate to calculate the annual interest amount.

3. Importance of PPF Interest Calculation

Details: Understanding potential interest earnings helps with financial planning, retirement preparation, and comparing investment options.

4. Using the Calculator

Tips: Enter your PPF account balance in dollars and the current interest rate as a decimal (default 0.071 for SBI's 7.1% rate). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate at SBI?
A: As of 2023, SBI offers 7.1% interest on PPF accounts (0.071 decimal).

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

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

Q4: Are there tax benefits on PPF interest?
A: Yes, PPF interest is tax-exempt under Section 80C of the Income Tax Act.

Q5: What's the minimum and maximum investment in PPF?
A: Minimum $500/year, maximum $150,000/year (as of 2023).