Will PPF rate of interest improve for October-December quarter?

Public Provident Fund (PPF) rate of interest: The rates of interest of small financial savings schemes are due for revision later this month, 30 September 2023. The rates of interest on PPF haven’t been revised since April 2020. At current your PPF deposits fetch you 7.1 per cent. The rates of interest relevant on investments in small financial savings schemes are notified by the federal government on a quarterly foundation.

Will govt hike PPF rate of interest for the approaching quarter?

According to Amit Gupta, MD, SAG Infotech, the Finance Ministry could maintain the continuing rate of interest for Public Provident Fund (PPF) accounts at 7.10% yearly for the October-November quarter, as of September 2023.

How PPF rate of interest is calculated

The relevant rates of interest for every quarter get credited to the investor’s PPF account on the finish of every monetary yr and compound yearly. The curiosity calculation for every calendar month takes into consideration the bottom stability within the account between the fifth day and the tip of the month. It is at all times advisable to put money into the PPF firstly of the yr. This approach you may be incomes curiosity on the deposits for the complete yr.

“To get essentially the most returns, buyers are urged to place in a hard and fast quantity each month earlier than the fifth of every month, ensuring they get curiosity for the entire month. This plan lets buyers get essentially the most returns on their investments,” mentioned Amit Gupta.

PPF taxation advantages

An particular person can declare revenue tax advantages below Section 80C on one’s annual deposit of as much as ₹1.5 lakh in a PPF account. Apart from this, one’s PPF maturity quantity can also be tax-exempt.

The rates of interest for the small financial savings schemes are due for assessment on September 30, 2023. The charges might be relevant for the September- November quarter of FY2023-24. For the July- September 2023 quarter, the rates of interest on small financial savings schemes had been hiked by 30 bps. This revision was significantly for the 1-year and 2-year time period deposits and 5-year recurring deposits.

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Updated: 21 Sep 2023, 09:45 AM IST