- Date : 08/06/2023
- Read: 3 mins
Secure your financial future with PPF interest rates set to increase. Don't miss out on higher returns. Invest smartly for 3 years at 7.1% interest.
- PPF interest rate likely to rise
- Other schemes may see rate increase
- PPF: tax benefits, guaranteed returns
- No revisions to PPF rate since April 2020
The Indian government is considering increasing the interest rates on small savings schemes, including the Public Provident Fund (PPF), which has remained unchanged at 7.1% for the past three years. The government is expected to announce a hike in the PPF interest rate in the coming months, which will be a welcome relief for investors who have been receiving low returns on their investment. Other small savings schemes, such as the Post Office Savings, Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme, and National Savings Certificates, may also see an increase in interest rates. The PPF is a popular long-term investment option that offers tax benefits and guaranteed returns, and a higher interest rate will make it even more attractive to investors. This article dives deep and explores how this change and affects your finances.
When will the government review interest rates?
The Modi government can soon make a decision to increase the interest rates of small savings schemes. A review of interest rates will be conducted this month. It is expected that there may be an increase in the interest rates of the Public Provident Fund (PPF). The government has not made any changes to the PPF account interest rates since April 2020.
When were the interest rates last revised for small savings schemes?
The government reviews the interest rates of small savings schemes every three months and makes revisions accordingly. Last time, for the first quarter (April to June) of the fiscal year 2023-24, the interest rates were increased on March 31. The Ministry of Finance had increased the interest rates by up to 0.70 per cent on schemes like Sukanya Samriddhi Yojana, National Savings Certificates, Kisan Vikas Patra, Post Office Savings Schemes, and Senior Citizens Savings Scheme. However, there were no changes made to the interest rates of the Public Provident Fund (PPF).
Read an article: Good news: Interest rates hiked on small saving schemes. Check new rates from 1 April 2023 for all schemes
What was the PPF interest rate before April 2020?
PPF interest rate was 7.9% before April 2020. Since then, it has remained at 7.1%. No changes have been made to PPF interest rates, despite revisions in other schemes. Officials cite high post-tax returns as the reason for not increasing PPF interest rates.
What is a PPF Account?
PPF is a long-term investment plan with a 15-year lock-in period. A minimum of 500 and a maximum of 1.5 lakh rupees can be deposited annually. Money be withdrawn after five years under certain conditions.
Also Read: Do not Miss Out on These 10 Small Savings Schemes: PPF, Mahila Samman, SSY and more!
The Indian government may increase the interest rates on small savings schemes, including PPF, which has remained at 7.1% for three years. A hike in the PPF interest rate will provide relief to investors and make it more attractive.
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