1. What is PPF Interest Calculation?

The PPF (Public Provident Fund) is a long-term savings scheme offered by India Post with tax benefits. The interest is compounded annually and calculated using the standard compound interest formula to determine the maturity amount after the investment period.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (₹)
• \( P \) — Principal amount (₹)
• \( r \) — Annual interest rate (decimal)
• \( n \) — Compounding frequency per year
• \( t \) — Time period in years

Explanation: The formula calculates how your investment grows over time with compound interest, where interest is added to the principal at regular intervals.

3. Importance of PPF Investment

Details: PPF offers tax benefits under Section 80C, provides guaranteed returns, and is one of the safest investment options with sovereign guarantee. The current interest rate for 2024 is 7.1% per annum.

4. Using the Calculator

Tips: Enter principal amount in ₹, annual interest rate in %, time period in years, and select compounding frequency. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate for 2024?
A: The current PPF interest rate for 2024 is 7.1% per annum, compounded annually.

Q2: What is the minimum and maximum investment in PPF?
A: Minimum investment is ₹500 per year, maximum is ₹1.5 lakh per year.

Q3: What is the lock-in period for PPF?
A: PPF has a lock-in period of 15 years, which can be extended in blocks of 5 years.

Q4: Are PPF returns taxable?
A: No, PPF returns are completely tax-free under Section 10(11) of Income Tax Act.

Q5: Can I withdraw from PPF before maturity?
A: Partial withdrawals are allowed from the 7th financial year onward, subject to certain conditions.