PPF Rate: PPF rate did not increase even during the period of increasing interest rates, 8.7% rate was available in 2015-16

PPF Rate Update: Once again the investors of Public Provident Fund are disappointed. In the review of interest rates of small savings schemes by the Finance Ministry for the first quarter of the new financial year, there has been no change in the interest rates of PPF. Public Provident Fund (PPF) is getting 7.1 percent interest. And investors will get the same interest in the next quarter also. There has been no change in the interest rates of PPF since the first quarter of the financial year 2020-21, whereas Sukanya Samriddhi Yojana has been increased twice during this period.

PPF rate has not changed since 4th financial year 

During the third quarter of the financial year 2018-19, before the 2019 Lok Sabha elections, the government had increased the interest paid on PPF by 40 basis points to 8 percent. Which was later reduced and was kept at only 7.1 percent from April 1, 2020 to March 31, 2022. During this period, in view of the back-breaking inflation, RBI increased the policy rates i.e. repo rate by 2.50 percent, after which the banks increased the deposit rates and the government increased the interest rates of small savings schemes. But the interest rates of Public Provident Fund were not increased. It is now going to be more than four financial years in which there has been no change in the interest rates of PPF. 

Lok Sabha elections can be announced any time. Due to this, the Finance Ministry has already reviewed the interest rates of small savings schemes for the first quarter of the financial year 2024-25 from April 1, 2024 to June 30, which is done in the last week of the month. And there has been no change in the interest rates of small savings schemes for the quarter under review.  

8.7 percent interest was given in 2015-16 

In the era of increasing interest rates on deposits, there has been no change in the rates of Public Provident Fund in which people invest for long term to save tax. In 2015-16, PPF used to get 8.7 percent interest. Investors are suffering huge losses from that level. Investors can invest in PPF account continuously for 15 years. And if the investor does not need the money then he can also extend his PPF account after 15 years on the basis of block period of five years.< /p>

Also read 

Uday Kotak: Amidst the huge fall in the stock market, Uday Kotak said, there is no sign of bubble in the market.