Post Office Savings Schemes: There is a very important news for the people investing in post office savings schemes and that the government has increased the interest rate of post office savings schemes. Looking at the needs of the people, the government offers small savings or post office schemes. A new small savings scheme for women has been announced in the budget.
Along with this, the limit has been increased in Senior Citizen Small Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS). In this sequence, the government has recently increased the interest rates of Public Provident Fund ( PPF ). Come, let us know by how much the government has increased the PPF interest rates.
Interest rates are reviewed every three months
Explain that the interest rates on savings schemes are reviewed by the government every three months. Popular savings schemes operated by the post office are also included in these savings schemes, as these savings schemes are supported by the Central Government and the returns here are fixed and guaranteed. Let us also tell you that even today most of the people of India rely more on investing in the post office.
Among the savings schemes whose interest rates have been increased by the government, NSC, SCSS, PPF etc. also provide tax-saving benefits under Section 80C of the Income Tax Act, 1961. The interest rates for this quarter January to March 2023 were announced by the government on December 30, 2022 and the next one will be announced around the end of March or April 1, 2023.
What is the interest rate on PPF
Public Provident Fund (PPF) is the most popular scheme among the savings schemes and one of the investment options. It has got tax exempt-exempt-exempt (EEE) status. Despite the lock-in period of 15 years, partial withdrawals can be made after seven years. The biggest thing is that the loan facility starts after the third year of investment. PPF has a lock-in period of 15 years.
In this, investment can be started with an annual contribution of at least Rs 500 and the maximum contribution limit has been fixed at Rs 1.5 lakh. In this scheme, for the current quarter January-March 2023, the interest rate has been fixed by the government at 7.1 percent.
PPF account opening conditions
- Any resident including salaried, self-employed, pensioner etc can open PPF account in India Post Office.
- The total number of PPF accounts including Post Office PPF account that a person can open is limited to one. It is not allowed to open joint account.
- A minor PPF account can be opened in a post office by a parent or guardian on behalf of a minor child. This is also limited to one minor PPF account per child.
- NRIs are not allowed to open a new PPF account. However, if a resident Indian becomes an NRI before the maturity of the PPF account, he can continue to operate the account till maturity.
Documents required for PPF account
- Identity Proof: Voter ID, Passport, Driving License, Aadhaar Card
- Address Proof: Voter ID, Passport, Driving License, Aadhaar Card
- PAN card
- passport size photo
- Enrollment Form- Form E8