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 with compounding benefits.

2. How Does the Calculator Work?

The calculator uses the PPF formula:

Where:

• \( annual \) — Annual investment amount (₹500 to ₹1.5 lakh)
• \( r \) — Annual interest rate (as decimal, e.g., 7.1% = 0.071)
• \( t \) — Investment period in years (minimum 15 years for PPF)

Explanation: The formula calculates the future value of regular annual investments with compound interest, accounting for the fact that PPF interest is compounded annually.

3. Benefits of PPF

Details: PPF offers EEE (Exempt-Exempt-Exempt) tax benefits, sovereign guarantee, long-term wealth creation, and loan/withdrawal facilities after specific periods.

4. Using the Calculator

Tips: Enter annual investment (₹500-₹150,000), current interest rate (check SBI website), and investment period (minimum 15 years). The calculator shows maturity amount, total investment, and interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum and maximum investment in PPF?
A: Minimum ₹500 per year, maximum ₹1.5 lakh per year across all PPF accounts.

Q2: Can I extend my PPF account beyond 15 years?
A: Yes, in blocks of 5 years after the initial 15-year period.

Q3: Is PPF interest rate fixed?
A: No, it's set by the government quarterly and may change.

Q4: Can I open multiple PPF accounts?
A: No, only one PPF account per individual is allowed.

Q5: What is the current SBI PPF interest rate?
A: As of 2023, it's 7.1% per annum (check SBI website for updates).