Public Provident Fund (PPF) interest rate revision: The quarterly revision in the interest rates of small savings schemes will happen at the end of this month. Government has not made any change in PPF interest rate since April 2020
Public Provident Fund (PPF) interest rate revision: The quarterly revision in the interest rates of small savings schemes will happen at the end of this month. The government has not made any change in the PPF interest rate since April 2020. However, at one time the interest on PPF was 7.9%, which was reduced to 7.1%.
With effect from 1 April 2020, the interest rate on PPF remains at 7.1% in the country. Since the government last hiked interest rates for small savings schemes in March 2023, there are expectations that the government will hike the PPF interest rate after about 3 years.
According to government officials, one of the reasons why the PPF interest rate has not increased much is that the post-tax returns from the scheme are high. In the case of taxpayers in the highest (31.2%) tax bracket, it is around 10.32%. Looking at this logic, the government cannot once again make any change in the interest rate of PPF. However, depositors are still expecting a revision in interest rates later this month.
Public Provident Fund (PPF) or PPF is a long term investment scheme in India. The PPF scheme allows investors to deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually for a tenure of 15 years. The interest rate on PPF is fixed by the government and it currently fetches 7.1 per cent interest annually.
PPF has a lock-in period of 15 years. This means that the investor cannot withdraw money from it for 15 years. However, up to 50 percent of the money can also be withdrawn if certain conditions are met. Investors can withdraw some money from the PPF account after the completion of 5 years from the date of account opening of your PPF account. You can withdraw 50% of your amount at the end of the fourth year.
