1. What is PPF Interest Calculation?

The PPF (Public Provident Fund) interest calculation uses compound interest to determine the maturity amount of your investment. It's a long-term savings scheme backed by the Indian government with tax benefits under Section 80C.

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 earned on both principal and accumulated interest.

3. Importance of PPF Investment

Details: PPF offers secure, tax-free returns with government backing. It's ideal for long-term wealth creation, retirement planning, and achieving financial goals with minimal risk.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: The Indian government reviews and announces PPF interest rates quarterly. Check the latest rates from official sources before calculating.

Q2: How often is interest compounded in PPF?
A: PPF interest is compounded annually, but the calculator allows you to see different compounding scenarios for comparison.

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

Q4: Are PPF returns tax-free?
A: Yes, PPF investments enjoy EEE (Exempt-Exempt-Exempt) status - principal, interest, and maturity amount are all tax-free.

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