Public Provident Fund, also known as PPF, is a safe and profitable investment scheme provided by the government for the benefit of the people. A person can get good returns by investing in it. Every year the central government changes the interest rates for such savings schemes. In this article, we will take a detailed look at the current interest rates and other details offered for the PPF scheme.
What is the interest rate of PPF scheme?: Government of India sets the interest rate on PPF. This interest rate varies quarterly. The government has announced interest rates for small savings schemes for the July to September quarter of 2024.
It has decided to keep the interest rates of all small savings schemes unchanged this quarter. This means that the interest rate will remain unchanged from April 1 to June 30. The PPF interest rate is currently 7.1 percent per annum.
PPF Maturity Period: The maturity period of PPF scheme is 15 years. In PPF scheme, you can invest from a minimum of Rs.500 to a maximum of Rs.1.5 lakh per year.
Who cannot open account under PPF Scheme?: PPF accounts cannot be opened in HUFs, Trusts or NRI names.
How is PPF Income Calculated?: As per HDFC Bank website, below are the key points you should keep in mind while calculating your PPF account income.
Interest on PPF Scheme: Interest on PPF scheme is calculated on a monthly basis. Minimum balance as on 5th and closing date of a particular month is considered for interest calculation. Let’s say your account balance is Rs 5,000 on 5th May and Rs 10,000 on 30th May. Interest will be calculated on Rs 5,000.
Try to deposit your monthly investment on or before the 5th of the month to maximize your PPF income. Your PPF income will be credited to your account at the end of a financial year. Also, under Section 80C, you can get tax benefits up to a maximum of Rs 1.5 lakh.
Discussion about this post