Bank of India PPF Calculator

What is a BOI PPF Account?

The BOI PPF Account means Bank of India Public Provident Fund Account, which is a Public Provident Fund (PPF) account offered by the Bank of India. It is a long-term savings scheme backed by the Government of India that qualifies for a tax deduction under Section 80C of the Income Tax Act. You can invest a minimum amount of Rs. 500 per year and a maximum amount of Rs. 1,50,000 per year. Currently, the BOI PPF interest rate is 7.1% per annum.

How to Use the BOI PPF Calculator?

The PPF Calculator offered by Policybazaar for the BOI accounts can be used by following the steps mentioned below:

Steps to Use the Bank of India PPF Calculator:

• Visit the Calculator: Go to the PPF calculator available on this page.

• Enter Details: Insert the required details as mentioned below-

  • Monthly/ Annual Contribution

  • Current PPF Interest Rate

  • Number of Years You Plan to Stay Invested

• Calculator Results: The calculator will show you the following results on the right side- 

  • Total Investment: Total amount contributed over the investment period.

  • Interest Earned: Total interest earned on your PPF amount.

  • Maturity Amount: Total amount received at the end of investment period, which includes your total contributions and the interest earned.

How Does a PPF Calculator Work?

A PPF calculator considers several factors that influence the final amount and performs calculations based on a formula used for the future value of an annuity:

• Interest Calculation: Interest is calculated on the lowest balance between the 5th day and the end of each month using the current interest rate declared by the government.

• Compounding: Interest is compounded annually. The calculator adds the interest to the principal at the end of each financial year.

• Maturity Amount: The total maturity amount is calculated by summing up the compounded interest over the entire investment period.

Calculation Formula of BOI PPF Calculator

The calculation formula for the maturity amount in the BOI PPF Account is as follows: 

FV = P{[((1+i)^n)-1]/i}

The above-mentioned variables mean:

FV = Fund Value

P = Principal amount contributions

i = Interest rate

n = Number of total investment years

What are the Benefits of BOI PPF Calculator?

The BOI PPF calculator offers several benefits to those considering investing in the Public Provident Fund (PPF) scheme in India; some of these are listed below:

• Gives you an accurate estimate of your PPF returns.

• Helps in better decision-making by allowing you to customize your inputs.

• Saves your time by providing fast results.

In Conclusion

The Bank of India PPF Calculator helps you to accurately estimate the returns and maturity value for the investments in your PPF account. By inserting a few details you can effectively plan your finances for your future expenses. The PPF Calculator for Bank of India is a hassle-free tool.