PPF Calculator

1. What is PPF?

A PPF account or a public provident fund account is one that has the backing of the Government of India. Hence, it is a good vehicle for saving and accumulating returns through fixed, yet relatively high, rates of interest. To save for the future, a PPF account assures a safe way to save and invest, letting you deposit sums of money and getting you compound interest. A PPF account is opened at a bank, like the State Bank of India.

2. What is a PPF calculator?

A reliable online tool to calculate the returns you can get with compounding effects of interest is the PPF calculator. It helps you to plan your future investments with a view to sensible portfolio management as per individual financial goals.

3. How do you use the PPF Calculator?

To use the PPF calculator effectively, the operation of it must be understood first. You have to enter certain variables and the calculator digitally computes your returns. The fields that have to be entered to compute PPF returns are the tenure, the invested amount, and the rate of interest. As the PPF account enjoys the power of compound interest, you can easily get to know the final amount you earn at the end of each financial year.

4. What are the benefits of PPF Calculators?

The benefits of PPF calculator use are as follows:

• The returns are known depending on the invested amount and the fixed interest earned.
• The calculator helps you to deposit the maximum amount in your PPF account to gain a tax benefit.
• The calculator aids in determining how much you would earn if you made any premature withdrawals.
• The calculator is easily available at no charge, is user-friendly, quick and accurate.

5. How is PPF interest calculated?

The rate of interest you get with a PPF account is a fixed rate, unless the Indian government changes it at any point in time. With each amount that is deposited in a PPF account, the fixed interest applies to the amount in the account. In a PPF account, you get interest on the interest that is accumulated, not just on the principal amount. For instance, if you start a PPF account with Rs. 10,000 and the rate of interest is 7%, at the end of the financial year, your returns will amount to Rs. 1,700. Now, if you wish to know your returns in the next financial year (year 2 after starting your account), you will earn 7% interest on Rs. 1,700. If you make more deposits during the second year of your account, your returns will be higher as your amount has increased.

6. How much is the interest rate I can get on my PPF account?

The PPF calculator helps you know how the interest rate can amount to good returns for you. The rate of interest on a PPF account is decided by the Government of India and can change according to the government’s wishes. Currently, it is at 7.1% per year.

7. Can I transfer my PPF account to another branch or office?

You are at liberty to make a transfer of your PPF account from a branch of a bank where it is held to any other branch of the same bank.