PPF Interest rate from April 2024: The Finance Ministry has announced the interest rates for the first three months of the new business year starting from April 1, 2024.
Public Provident Fund (PPF) is a popular long term savings scheme in India. The interest rates for this are 7.1 percent from January-March 2024 and thereafter from April 1, 2024 to June 2024. The government has announced new interest rates for the next quarter. There has been no change in this. PPF was first introduced to the public in the year 1968 by the National Savings Institution of the Ministry of Finance. Since then it has emerged as a powerful tool for investors to create long-term assets.
Investors can open a PPF account in any bank or nearest post office. However one needs to deposit a minimum of ₹500 per year in one’s PPF account. You can set a maximum of ₹ 1.5 lakh in a PPF account. PPF account takes 15 years to mature.
It will be difficult to earn crores with less investment but personal finance experts say that PPF can do this with the power of compounding. Investors can increase their PPF account multiple times in a block of 5 years. A PPF account holder investing ₹1.50 lakh every year in his PPF account can also divide the monthly payment into installments of Rs 8333.3, then after 25 years of investment, one’s PPF maturity amount will be ₹1.03, It will be around 08,015 or so.
PPF account comes under EEE category where a person can claim income tax benefit under Section 80C on his annual deposit up to Rs 1.5 lakh. PPF is popular because it is one of the safest investment products. That means the Government of India guarantees your investment in the fund. The interest rate is set by the government every quarter. PPF is better than many other investment options because your investment is tax free under Section 80C of the Income Tax Act (ITA) and the returns from PPF are also not taxed.
