1. What is SBI PPF Account Interest Rate Calculator?

Definition: This calculator computes 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 estimate their interest earnings for financial planning.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Interest earned ($)
• Balance — PPF account balance ($)
• i — Interest rate in decimal (e.g., 0.071 for 7.1%)

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

3. Importance of PPF Interest Calculation

Details: Accurate interest calculation helps in tax planning, financial goal setting, and understanding the growth of your PPF investment.

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 SBI PPF interest rate?
A: As of 2023, the rate is 7.1% (0.071 in decimal), but this may change quarterly.

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.

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

Q5: What's the minimum balance for PPF?
A: The minimum annual deposit is $500, but there's no minimum balance requirement for interest calculation.