PPF Calculator: In the review done by the Ministry of Finance at the end of March 2023, the interest of many savings schemes including Sukanya Prosperity was increased. But at that time the interest rate of PPF was retained at 7.1 percent only.
PPF Interest Rate: If you also invest in Public Provident Fund (PPF), then this news will make you happy. Sources have claimed that the government may increase the interest on PPF in the interest rate review to be held on June 30, 2023. The government has not changed the interest rate available on PPF for a long time. Many small savings schemes are run by the central government for the middle class. One of those schemes is PPF. Investing in PPF is done for the long term. Its interest rate has not been changed for more than two years.
Changes were made in April 2020
The interest rate of PPF was last changed in April 2020. At that time the interest rate was reduced from 7.9 percent to 7.1 percent. In the review done by the Ministry of Finance at the end of March 2023, the interest of many savings schemes including Sukanya Prosperity was increased. But at that time the interest rate of PPF was retained at 7.1 percent only. This time it is expected that the government can reduce the interest rate for PPF account holders.
Minimum investment of Rs 500 required
The decision to increase the interest rate on PPF depends entirely on the current financial position of the government, the cost of borrowing and the impact on the overall economy. Let us tell you that there is a provision of income tax exemption on investment of Rs 1.5 lakh in PPF annually. In this, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year. Sources also claim that government employees are protesting against increasing the interest rate of PPF.
It was told in a media report that the reason behind not increasing the interest rate of PPF is the logic of the government employees. He says that after not increasing the interest rate of PPF, a total interest of 10.32 percent is received on the amount invested in the scheme after the tax return. In such a situation, this scheme is getting more returns than before compared to other schemes.
