1. What is a SBI PPF Interest Calculator?

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 investors plan their PPF investments by projecting interest earnings.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Amount earned ($)
• Balance — Current PPF account balance ($)
• i — Annual interest rate (7.1% = 0.071)

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

3. Importance of PPF Interest Calculation

Details: Accurate interest calculation helps in financial planning and understanding the growth of your PPF investments.

4. Using the Calculator

Tips: Enter your current PPF balance and the 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 decimal), but this may change periodically.

Q2: How often is PPF interest calculated?
A: Interest is calculated monthly but credited annually on March 31st.

Q3: Is PPF interest compounded?
A: Yes, PPF interest is compounded annually.

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

Q5: What's the minimum and maximum investment in PPF?
A: Minimum ₹500/year, maximum ₹1.5 lakh/year.