1. What is a PPF Interest Calculator Year Wise?

Definition: This calculator computes the annual interest earned on a Public Provident Fund (PPF) account and shows the year-by-year growth of your investment.

Purpose: It helps investors understand how their PPF investment grows over time with compound interest.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Annual interest earned ($)
• Balance — Account balance at start of year ($)
• i — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)

Explanation: The calculator compounds interest annually, adding each year's interest to the principal for the next year's calculation.

3. Importance of PPF Interest Calculation

Details: Understanding year-wise growth helps in financial planning, comparing investment options, and projecting long-term savings.

4. Using the Calculator

Tips: Enter your initial PPF balance, current interest rate (default 7.1%), and number of years (default 15 years - PPF maturity period). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: How often is PPF interest compounded?
A: PPF interest is compounded annually but calculated monthly on the lowest balance between 5th and last day of month.

Q2: What's the current PPF interest rate?
A: As of 2023, it's 7.1% but this changes quarterly. Check with your bank for current rates.

Q3: Is PPF interest taxable?
A: No, PPF enjoys EEE status - contributions, interest, and maturity amount are all tax-free.

Q4: Can I extend my PPF beyond 15 years?
A: Yes, in blocks of 5 years with or without further contributions.

Q5: How accurate is this calculator?
A: It gives approximate values. Actual PPF calculation uses monthly minimum balances.