SBI PPF Calculator

Let us know in detail about what is PPF, SBI PPF scheme, what is SBI PPF Calculator, and how does it work.

What is PPF?

The PPF was introduced by the National Saving Institute of the Ministry of Finance that is under the Central Government in the year 1968. Public Provident Fund is a savings plus investment scheme launched by the Government of India to encourage individuals to invest their savings to achieve decent returns along with additional tax benefits at the end of the tenure.

PPF allows the investors to build a substantial financial corpus by offering guaranteed returns with minimal risk involved. The PPF interest rate is revised every quarter and applies on all public and private banks. The current Public Provident Fund Interest Rate is 7.1% annually. With benefits like Tax Return, loan facility, partial withdrawals, risk-free guaranteed returns, etc. investing in PPF is extremely safe and highly recommended for low-risk taking investors.

What is SBI PPF Calculator and How is it Useful?

State Bank of India Public Provident Fund Calculator is an easy-to-use online financial tool that helps in the calculation of complex PPF related calculations in just a blink of an eye. The PPF Calculator helps in calculating the yearly returns that an investor can earn by contributing a fixed amount for a fixed period of time. It is important to note that the PPF account comes with a tenure of 15 years and cannot be closed before the lock-in period except in certain cases.

The SBI PPF Calculator is beneficial to investors in the following mentioned ways:

• Gives you a clear understanding of how much should be invested to achieve the desired outcome.

• Calculates and predicts the total amount an investor will invest till the end of the tenure based on current investments made.

• Calculates the total interest earned at the time of maturity.

• Total amount to be received at the time of maturity.

How to Use SBI PPF Calculator?

The maturity amount of the SBI PPF Calculator can be calculated on the PPF Calculator in a hassle-free manner just by following these simple steps:

• Drag the slider to enter the monthly invested amount in the SBI PPF account

• PPF Rate of Interest is generally auto-filled in the calculator

• Drag the slider to the total years of investments made in the PPF account

• SBI PPF Calculator will instantly calculate the total investment amount, interest earned till date, and maturity amount at the end of the tenure

SBI Public Provident Fund Calculator Formula

The following compounded formula is used for the computation of SBI PPF maturity value:

F = P [({(1+ i) ^ n} – 1) / i]

The elaboration:

F = Maturity value of the Public Provident Fund

P = The annual installments made throughout the tenure

i = Rate of Interest

n = Total number of years

Let us understand with an illustration. Suppose Mr. Rohit invests Rs. 10,000 for 15 years in SBI PPF account. The following table shows the total interest receivable by Mr. Rohit and the loan and withdrawal amount eligibility related to the investment. (note that the interest rate is rounded off to 8% here).

Advantages of SBI PPF Calculator

Some of the advantages of using an SBI PPF Calculator are:

• Hassle-free results in comparison to manual calculations.

• Safest investment option for low risk-taking investors.

• Accurate results with minimum basic details.

• Guides how much investment should be made to achieve a desirable maturity amount.

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