Will the government end the 1260 day drought on PPF, how much will the earnings increase? - Newztezz Online

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Thursday, September 21, 2023

Will the government end the 1260 day drought on PPF, how much will the earnings increase?

There may be a change in the interest rates of Small Savings Scheme on 30th September. Investors are expecting more changes in the interest rates of PPF. There has been no change in the interest rate of PPF for 42 months.

The interest rates of the Small Savings Scheme are going to be revised at the end of this month, on 30 September 2023. The interest rates on PPF have not been revised since April 2020. Currently you get 7.1 percent interest on your PPF deposit. Now the biggest question is whether the government will end PPM's drought of 1260 days this time or not. Will PPF interest rates increase or not? The interest rates available on investments in Small Savings Scheme are revised every quarter by the government.

Will the government increase PPF interest?

SAG Infotech MD Amit Gupta said in a media report that the Finance Ministry will not make any change in the interest rates of Public Provident Fund i.e. PPF account for the October-December quarter. This means that during the quarter from October to December, investors will continue to get 7.10 percent return on PPF. There has been no change in returns on PPF since April 2020.

How is PPF interest calculated?

The interest rates applicable for each quarter are deposited into the investor's PPF account at the end of each financial year. These are compounded annually. Interest for each calendar month is calculated taking into account the lowest balance amount in the account between the 5th day of the month and the end of the month. Experts always recommend investing in PPF at the beginning of the year. In this way you get interest on the deposit throughout the year. According to Amit Gupta, to get maximum returns, investors have to deposit their amount before the 5th of every month. So that it can be ensured that they continue to get interest throughout the month. This scheme allows investors to get maximum returns on their investments.

How to get tax benefit on PPF

Tax benefit can be claimed under Section 80C on annual deposits up to Rs 1.5 lakh in PPF account. Apart from this, whenever your PPF account matures, you get tax free returns. The interest rates of the Small Savings Scheme are to be reviewed on September 30, 2023. The rates will be applicable for the October-December quarter of the financial year 2023-24. Interest rates on small savings schemes were increased by 30 basis points for the July-September 2023 quarter. This change was specifically for 1 year and 2 year FDs and 5 year recurring deposits.


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