Public Provident Fund (PPF) interest rate is to be reviewed this month. Will it increase?
Public Provident Fund (PPF) Interest Rate News September 13: The quarterly review of interest rates for small savings schemes like PPF by the Ministry of Finance is due this month. Even as PPF account holders have been hoping for an interest rate hike, it has remained unchanged since April 2020.
As the review of interest rates for small savings schemes is to take place again by the end of the current month, PPF and other small savings accountholders are hoping for a hike in interest rates. However, experts believe the status quo on interest rates is likely to be maintained under the current economic climate.
“For minor savings programmes like PPF, SCSS, and NSC, the status quo is likely to be maintained given the current economic climate and the fact that the interest rate cycle has not yet peaked,” Col. Rakesh Goyal (Retd), a Certified Financial Planner and Founder of Lets Invest Wisely, told FE Money.
“Even if there is always a chance of increases, the current situation, especially the need for economic stability, makes it seem unlikely that interest rates will be increased at this time. It is reasonable to assume that the rates will stay the same in order to support fiscal responsibility and economic recovery,” Col. Goyal added.
Also Read: Public Provident Fund (PPF) Interest Rate for July-September 2023 is out. Check details here
The tax advantages of PPF make it an attractive scheme for investors. For instance, it is estimated that even at 7.1% interest, the effective the effective post-tax returns from PPF work out to be 10.32% for taxpayers in the highest (31.2) tax bracket. This is also one of the reasons why the Government has kept the PPF interest rate unchanged, even as rates of several other small savings
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