If you invest in PPF (Public Provident Fund), Sukanya Samriddhi Yojana or such schemes, then the government keeps on making some changes from time to time. If you also do not keep updated with the rules applicable to them, then know how much loss can be caused to you. Let us tell you what changes have taken place in PPF schemes.

You can start investing with a small amount.
You can also take advantage of the savings schemes of the government with less money. Your money remains safe in these schemes. You can deposit money up to 1.50 lakh in these. The government has reduced the interest rate of PPF to 7.10 percent.

Money is deposited once a month,
you can invest up to Rs 500 in PPF in at least 1 year, if you deposit up to Rs 1.5 lakh in PPF in 1 year, then you get the benefit of tax exemption. So you can deposit money in this every month

Account will not be closed even after 15 years,
investment in it gets closed after 15 years. But if you want to invest more in this, then you can invest in this scheme even after 15 years, but then you can withdraw the money only once in 1 year.

How to open account
You have to submit Form-1 to open PPF account. If you want to invest even after 15 years, then you have to apply in Form-4.

How to take loan on PPF account
You can easily get loan on PPF account. You get a loan of only 25% of the money in your PPF account.

The post PPF Update: The central government has made a big change in the rules of PPF, if you have an account then know immediately! first appeared on Rightsofemployees.com.

The current interest rate on government securities is 7.3 per cent, which is higher than PPF. The interest rate on securities was 6.5 per cent in January 2022 and 7.6 per cent in June. There has been no change in interest rates on small savings schemes for nine consecutive quarters till September. After the increase in interest rates on government securities, the interest rates of many small savings schemes, including PPF, have gone negative. Therefore, in the meeting to be held at the end of this month, it is almost certain to increase their interest rates.

What is the relationship of securities and PPF There is a direct relationship between the interest rates of government securities and PPF. There is a provision to pay interest up to 1 percent more than the average interest rate of securities on PPF. It is decided by the government in the meeting held every quarter. The higher the market yield of government securities, the interest rates of small savings schemes like PPF will also be increased in the same proportion.

Benefit on other savings schemes will also be available Along with PPF, investors can get the gift of increase in interest rates of other small savings schemes. In this, interest rates can also be increased on National Saving Certificate, Kisan Vikas Patra (KVP), Fixed Deposit, PPF, Senior Citizen Savings Scheme and Sukanya Samriddhi Yojana. It is expected that a decision on this can be taken in the meeting to be held later this month.

In case of PPF, the interest rate can be 25 basis points higher than the average yield. It can be understood that if the average yield of government securities in a quarter was 6.75 percent, then the interest rate of PPF for the next quarter should be 25 basis points higher, ie 7 percent.

The interest rate was not reduced even when the yield fell, , despite there being a direct relationship between the yield of securities and the PPF interest rates, the government did not cut the interest rates even after the fall in the yield. There have been times during the pandemic when the yield of government securities has declined, but the government did not cut the interest rates of PPF, NSC and other small savings schemes.

The post PPF Update: Good news for investors! The government may soon increase the interest rate on PPF, see here more details first appeared on Rightsofemployees.com.