PPF interest rate News

This decision will directly impact millions of citizens across India who have invested in various small savings schemes. Some popular schemes include the Senior Citizen Savings Scheme, Monthly Income Account Scheme, National Savings Certificate, Public Provident Fund Scheme, Kisan Vikas Patra, Sukanya Samriddhi Account Scheme, among others.

The government is offering a return of 7.1 per cent on PPF. The PPF interest rate is subject to change every quarter as per the government's directive. The PPF also offers income tax exemptions under Section 80C of the Income Tax Act 1961.

One of the most significant benefits of the PPF is that it provides a guaranteed tax-free return. PPF rules provide that an annual investment of up to Rs 1.5 lakh qualifies for a tax credit under Section 80C of the Income Tax Act 1961. PPF will yield a 7.1 percent return in the current quarter.

The interest rate on the Public Provident Fund (PPF) is 7.1 percent compounded annually. This scheme has a 15-year maturity period, but it can be extended for additional 5 to 5 years. Instead of depositing Rs 1.50 lakh in a year, you can alternatively deposit Rs 12,500 per month.

You can invest up to Rs 1.5 lakh in a PPF account in a year, or Rs 12,500 per month. 7.1% interest is available on PPF As a result, after 15 years, the total value of a monthly investment of Rs 12500 will be Rs 40,68,209.

Government on Tuesday cut interest rates on small savings of 1, 2, 3 year term deposits; Kisan Vikas Patra and 5-year Recurring Deposit by 0.25 percent.  

Its bad news for investors! The interest rates on small savings schemes like NSC and some post office schemes with maturity up to five years are set to fall from April onwards.