Public Provident Fund Interest Rate: The Central Government runs many types of savings schemes. The name of one of those schemes is Public Provident Fund Scheme.
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The government has not made any change in the interest rates of this small savings scheme for a long time. By the end of June 2023, the government can change the interest rates of this scheme. It is worth noting that the government reviews the interest rates of this savings scheme every three months. In such a situation, a change is possible by the end of this month.
No changes made since April 2020
It is noteworthy that the last change in the interest rates of the Public Provident Fund Scheme was made by the Central Government in the year 2020. On 1 April 2022, the government had reduced the interest rates from 7.9 percent to 7.1 percent. Since then no change has been made in this scheme.
It is worth noting that in March 2023, the Central Government had increased the rate of interest of many small savings schemes, but the rates of PPF have remained the same at 7.1 percent. But this time the PPF account holders are hopeful that by the end of June 2023, the government may consider increasing the interest rates.
Why there is no change in the interest rates of PPF for a long time-
According to the report published in the Financial Express, behind not increasing the interest rates of PPF, government employees have said that the reason behind not increasing the rates of this scheme is that after the tax return, the total amount invested under this scheme is 10.32%. Percent interest rate and benefits are available. In such a situation, this scheme is already getting more returns than other schemes. For this reason, the government has not increased its rates for a long time.
You get the benefit of tax exemption on investing in PPF
Public Provident Fund Scheme is an excellent tax saving scheme in which you get a deduction of Rs 1.5 lakh under Section 80C of Income Tax. Along with this, no tax will have to be paid on the interest received on the amount deposited under this scheme.
You will not have to pay any tax on the maturity amount of PPF. It is worth noting that under this scheme, up to 9.5 percent interest rate is available at a time. The lock in period of this scheme is 15 years. If you do not want to invest in EPF and NPS schemes, then you can get strong returns on your retirement by investing in PPF.
The government increased the interest rate on these government schemes
In the last quarter of the financial year 2022-23, the Senior Citizens Savings Scheme, Sukanya Samriddhi Yojana, Kisan Vikas Patra, Post Office FD Scheme (Post Office Fixed Deposits) ), Monthly Income Scheme and Post Office RD Scheme (Post Office Recurring Deposit) interest rates were increased.
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