Government announces big update on PPF interest rate for account holders; details in 15 words.

The Finance Ministry is expected to announce an increase in the interest rate of Public Provident Fund (PPF) for the July-September quarter. This news will come as a relief to those who have invested in PPF. The announcement will be made on June 30.

PPF Interest Rate Currently at 7.10 Percent

The current interest rate of PPF is at 7.10 percent, which has not been changed for the past 12 quarters. However, the interest rate of Sukanya Samriddhi Yojana was increased by half a percent in March 2023.

Expected Increase in PPF Interest Rate

Sources suggest that the Finance Ministry may increase the interest rate of PPF by half a percent, which will take it to 7.6 percent. PPF allows a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh in a year. Investing in PPF also provides exemption under section 80C of income tax.

Other Small Savings Schemes and their Interest Rates

The Senior Citizen Savings Scheme has an interest rate of 8.2 percent, while the interest rate on National Savings Certificate (NSC) is at 7.7 percent. The Sukanya Samriddhi Yojana has an interest rate of 8 percent per annum, and the Kisan Vikas Patra has an interest rate of 7.5 percent.