Sbi Ppf Calculator

PPF Future Value Formula:

\[ FV = \text{annual} \times \frac{(1+r)^t -1}{r} \times (1+r) \]

Future Value (FV):

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1. What is SBI PPF?

The Public Provident Fund (PPF) is a long-term savings scheme offered by State Bank of India (SBI) with tax benefits under Section 80C of the Income Tax Act. It has a 15-year maturity period and offers attractive interest rates.

2. How Does the Calculator Work?

The calculator uses the PPF future value formula:

\[ FV = \text{annual} \times \frac{(1+r)^t -1}{r} \times (1+r) \]

Where:

\( annual \) — Annual investment amount (INR)
\( r \) — Annual interest rate (in decimal)
\( t \) — Investment period in years

Explanation: The formula accounts for compound interest on annual investments made at the beginning of each year.

3. Importance of PPF Calculation

Details: Calculating future value helps in financial planning, understanding the power of compounding, and making informed investment decisions.

4. Using the Calculator

Tips: Enter annual investment in INR, interest rate in percentage, and investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% per annum (compounded yearly), but it's revised quarterly by the government.

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

Q3: Can I extend my PPF account beyond 15 years?
A: Yes, in blocks of 5 years after the initial 15-year period.

Q4: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q5: How often is interest credited in PPF?
A: Interest is calculated monthly but credited to the account at the end of the financial year.