When Is PPF Interest Calculated

PPF Interest Crediting Formula:

\[ \text{Interest Credited} = \text{End of Financial Year} \]

Interest Credited (date):

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1. What is PPF Interest Crediting?

Definition: PPF (Public Provident Fund) interest is calculated monthly but credited to the account only once at the end of each financial year.

Purpose: This calculator helps determine when your PPF account interest will be credited based on your deposit dates.

2. How Does PPF Interest Calculation Work?

The interest crediting follows these rules:

\[ \text{Interest Credited} = \text{March 31 of the Financial Year} \]

Where:

Interest is calculated on the lowest balance between 5th and last day of each month
Calculated monthly but credited annually
Financial year runs from April 1 to March 31

Explanation: Regardless of when you deposit within the financial year, interest is credited on March 31 for that year.

3. Importance of Knowing Interest Crediting Date

Details: Understanding when interest is credited helps with financial planning and tax calculations, as PPF interest is tax-free.

4. Using the Calculator

Tips: Enter the date of your last PPF deposit to see when the interest for that financial year will be credited.

5. Frequently Asked Questions (FAQ)

Q1: When exactly is PPF interest credited?
A: Interest is credited on March 31 of each financial year, regardless of deposit dates within that year.

Q2: Does the deposit date affect interest calculation?
A: Yes, deposits made before the 5th of the month earn interest for that full month.

Q3: What's the current PPF interest rate?
A: The rate is set quarterly by the government (currently 7.1% as of 2023).

Q4: Is PPF interest compounded?
A: Yes, interest is compounded annually and added to the principal.

Q5: Can I see monthly interest calculations?
A: No, while calculated monthly, only the annual credited amount is visible in your account.