1. What is SBI PPF Interest 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 investors estimate their returns from PPF investments, a popular long-term savings scheme in India.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{Interest} \) — Annual interest earned ($)
• \( \text{Balance} \) — PPF account balance ($)
• \( i \) — Interest rate (7.1% or 0.071 in decimal)

Note: Interest is calculated monthly but credited annually at the end of the financial year.

3. Importance of PPF Interest Calculation

Details: PPF offers tax-free, risk-free returns with a 15-year lock-in period. Understanding interest helps in financial planning.

4. Using the Calculator

Tips: Enter your PPF account balance and current interest rate (default 7.1%). The calculator shows the annual interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is the current SBI PPF interest rate?
A: As of 2023, the rate is 7.1% per annum, set by the Indian government quarterly.

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

Q3: Is PPF interest compounded?
A: Yes, PPF interest is compounded annually, meaning each year's interest earns interest in subsequent years.

Q4: What's the minimum balance required?
A: Minimum ₹500 per year deposit is required to keep the account active, with a maximum of ₹1.5 lakh per year.

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