1. What is a PPF Interest Calculator for Post Office?

Definition: This calculator estimates the monthly interest earned on a Public Provident Fund (PPF) account based on the minimum balance and current interest rate.

Purpose: It helps PPF account holders understand how much interest they can expect to earn each month.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Monthly interest earned ($)
• Min Balance — Minimum balance in the account during the month ($)
• i — Annual interest rate (in decimal form, e.g., 0.071 for 7.1%)

Explanation: The annual interest is calculated on the minimum balance and then divided by 12 to get the monthly interest.

3. Importance of PPF Interest Calculation

Details: Understanding your monthly interest helps with financial planning and tracking the growth of your PPF investment.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How is PPF interest calculated?
A: Interest is calculated monthly on the minimum balance between the 5th and last day of the month, then credited annually.

Q2: What's the current PPF interest rate?
A: As of 2023, it's typically 7.1% (0.071 in decimal), but this may change quarterly.

Q3: When is PPF interest credited?
A: Interest is calculated monthly but credited to the account at the end of each financial year.

Q4: Is PPF interest compounded?
A: Yes, PPF interest is compounded annually, meaning each year's interest earns interest in subsequent years.

Q5: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.