PPF Interest Hike Update: The government will review the change in the interest rate of Small Saving Scheme at the end of this month i.e. September. There is a possibility that the government may change the interest rates on the Public Provident Scheme (PPF Scheme) in its meeting to be held on September 30.
The interest rates on the PPF scheme have not been changed since April 2020. At present, this scheme is offering interest at the rate of 7.1 percent. The interest rate offered on small savings schemes is changed by the government every three months.
Will the government increase the interest rate on PPF?
Some experts believe that the Finance Ministry may keep the current interest rate for Public Provident Fund (PPF) accounts for the October to November quarter at 7.10 percent till September 2023. The interest rates applied every quarter are credited to the investor’s PPF account at the end of the year.
What do experts say
Regarding Public Provident Fund (PPF), experts suggest that you should invest in it in the beginning of the year itself. So that you continue to get the benefit of interest throughout the year. Experts suggest that to get higher returns, you should deposit a fixed amount before the 5th of every month. So that you continue to get the benefit of interest throughout the month. This scheme also allows investors to get the highest returns on their deposited amount.
Tax benefit is available in PPF
The biggest feature of the Public Provident Fund (PPF) scheme is that this scheme also offers tax benefits to those who deposit money. This scheme gives income tax benefits under Section 80C to investors on annual investment up to Rs 1.5 lakh. Apart from this, the amount received at the time of maturity is also tax free. The interest rates of small savings schemes are to be reviewed on September 30, 2023. The new interest rates will be applicable for the September-November quarter of financial year 2023-24. Interest rates on small savings schemes were increased by 30 bps for the July-September 2023 quarter.
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