Small Saving Schemes: The Central Government has increased the interest rate of many small savings schemes for the April to June quarter. The government has increased this from 10 to 70 bps. Small Saving Schemes Interest Rates on which the government has increased, include Senior Citizen Saving Scheme, National Saving Certificate, Sukanya Samriddhi Yojana, Monthly Income Saving Scheme, Kisan Vikas Patra etc., but Public Provident Fund (PPF) interest has not been increased.
PPF’s interest is 7.1 percent annually. On the other hand, the interest for the time deposit for five years is 7.7 percent. Apart from this, the interest of Sukanya Samriddhi Yojana has been increased to 8 percent, Senior Citizen Saving Scheme to 8.2 percent. In this case, you can earn more money by investing in PPF as compared to these schemes.
What are the benefits of PPF
Public Provident Fund Scheme is one such option, which allows investors to deposit a lump sum amount as well as deposit in instalments. However, you can deposit only 12 installments in a year. It can be invested every month like SIP. Experts ask to invest only between 1st to 4th date, because interest is added for that month.
This scheme is under tax exemption
PPF account can be opened in any PSU or private bank. Also you can open it in the post office. You can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in this. It was kept in the category of exemption under income tax.
How to get more profit
If you want to take advantage of more interest under this scheme, then you will have to deposit the amount between 1st to 4th of the month, due to which you will get the interest of that month as well. This scheme comes with a minimum maturity of 15 years. In this case, if you invest in this scheme for 15 years, you will get more money than other schemes.
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