1. What is PPF Interest Calculation?

The PPF (Public Provident Fund) interest calculation uses compound interest formula to determine the maturity amount of your investment. It's a popular long-term savings scheme in India with tax benefits under Section 80C of the Income Tax Act.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Maturity amount (₹)
• \( P \) — Principal investment amount (₹)
• \( R \) — Annual interest rate (%)
• \( n \) — 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 is one of the most secure investment options in India with guaranteed returns, tax benefits, and long-term wealth creation potential. It has a lock-in period of 15 years with options for extension.

4. Using the Calculator

Tips: Enter principal amount in rupees, annual interest rate in 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 in India?
A: The interest rate is set by the government quarterly. As of [current date], it is typically around 7-8% per annum.

Q2: How often is interest compounded in PPF?
A: PPF interest is compounded annually, but the calculation is done on monthly balances.

Q3: What is the minimum and maximum investment in PPF?
A: Minimum ₹500 per year, maximum ₹1.5 lakh per year. You can make contributions in lump sum or installments.

Q4: Are PPF returns taxable?
A: No, PPF returns are completely tax-free under Section 80C of the Income Tax Act.

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