PPF account holders will get ‘good news’! Interest rate may increase this week, know why speculations are being made

highlights

The current interest rate on PPF deposits is 7.1%.
Due to continuous increase in repo rate, the expectation of increase in interest rates for PPF has increased.
After 8% in June 2019, interest rates on PPF have come down continuously.

new Delhi. Customers investing in Public Provident Fund can get the benefit of increase in interest rates, as there is speculation of an increase in interest rate on PPF account before 31st December. If there is no change in this rate till December 31, then the same will apply to PPF deposits made in the first quarter of the new year 2023. Currently, the current interest rate on PPF deposits is 7.1%.

In fact, amidst the increase in the repo rate by the Reserve Bank of India, PPF account holders are also expecting a revision in the interest rates received in the Public Provident Fund. Now many banks are also offering more interest on fixed deposit schemes as compared to PPF.

Will be announced by 31 December
The Central Government revises the interest rate of Public Provident Fund (PPF) on a quarterly basis. The next revision in PPF interest rate will happen by the end of December 2022, so the PPF interest rate applicable in the first quarter (January-March) of 2023 will be known by December 31, 2022.

read this also- PPF interest rates reduced by 1.7% in 10 years, know how much return is being received now

Due to the continuous increase in the repo rate by the RBI in May this year, the loan from the bank has become costlier, as well as the interest on the savings scheme has also increased under the benchmark rate. Despite this, the interest received in many government savings schemes including PPF has not increased. In September 2018, the interest rate on PPF was 7.4%. It increased to 8% in June 2019 but has started falling since then and now the current interest rate on PPF is 7.1%. PPF interest rate between 01.04.2012 to 31.03.2013 was 8.8% and the investment limit was Rs.1 lakh/year.

Interest on bank FDs increased sharply
Due to the increase in the repo rate by the Reserve Bank of India, banks have increased the interest rates on fixed deposits of various periods. Now the interest received on FD in government and private banks has gone up to about 8 percent. At the same time, some banks and financial institutions are offering up to 9 percent interest on FDs to senior citizens.

Tags: Bank FD, Investment and return, ppf, PPF account, RBI

Source link

Leave a Comment

%d bloggers like this: