PPF Interest Rate: Will the interest on PPF reach 8 percent in the year 2024? At present, interest on Public Provident Fund (PPF) accounts in the country is available at the rate of 7.1 percent. These rates on PPF remain the same since April 2020.
Will the interest on PPF reach 8 percent in the year 2024? At present, interest on Public Provident Fund (PPF) accounts in the country is available at the rate of 7.1 percent. These rates on PPF remain the same since April 2020. Meanwhile, the government has increased the interest on many small saving schemes like Senior Citizen Saving Scheme (SCSS), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana (SSY) etc. PPF is the only one whose interest rates have not been increased. The government will now decide the interest rates for April-June 2024 at the end of next month. It remains to be seen whether the government will increase the interest of the common people in long term investment schemes before the elections in 2024 or not. Will the government increase the interest rate on PPF to 8%?
How does the government decide the interest on small savings schemes?
Interest rates in small savings schemes depend on the yield on government securities of the previous quarter. 10 year government securities are giving yields ranging from 7 percent to 7.2 percent. It is expected to be between 7.1 percent to 7.2 percent. Inflation rate is also expected to be between 5 to 6 percent.
Currently, these are the interest rates on small savings schemes
- 1 year Post Office FD: 6.9 percent
- 2 year post office FD: 7 percent
- 3 year post office FD: 7 percent
- 5 year post office FD: 7.5 percent
- 5 year RD (Post Office RD): 6.7 percent (earlier the interest was 6.5 percent)
- National Savings Certificate (NSC): 7.7 percent
- Kisan Vikas Patra (KVP): 7.5 percent (mature in 115 months)
- PPF – 7.1 percent
- Sukanya Samridhi Account (Sukanya Samridhi Yojana): 8.2 percent
- Senior Citizen Saving Scheme: 8.2 percent
- Monthly Income Scheme (Post Office Monthly Scheme): 7.4 percent
These are the current interest rates on small savings schemes
Interest rates on small savings schemes range from 4 percent to 8.2 percent per annum. The government is paying interest at the rate of 7.1 percent per annum on PPF. This time it is expected that the government may increase the interest rates on PPF. At present the interest on small savings scheme is almost equal to that of FD.
