Public Provident Fund: Will the PPF interest rate increase for the October-December quarter?

livemint.com:

small savings schemes are due for revision later this month, 30 September 2023. The interest rates on PPF have not been revised since April 2020. At present your PPF deposits fetch you 7.1 per cent.

The interest rates applicable on investments in small savings schemes are notified by the government on a quarterly basis. According to Amit Gupta, MD, SAG Infotech, the Finance Ministry may keep the ongoing interest rate for Public Provident Fund (PPF) accounts at 7.10% yearly for the October-November quarter, as of September 2023. The applicable interest rates for each quarter get credited to the investor’s PPF account at the end of each financial year and compound annually.

The interest calculation for each calendar month takes into account the lowest balance in the account between the fifth day and the end of the month. It is always advisable to invest in the PPF at the beginning of the year. This way you will be earning interest on the deposits for the entire year.

“To get the most returns, investors are suggested to put in a fixed amount every month before the 5th of each month, making sure they get interest for the whole month. This plan lets investors get the most returns on their investments," said Amit Gupta. An individual can claim income tax benefits under Section 80C on one's annual deposit of up to ₹1.5 lakh in a PPF account.

Apart from this, one's PPF maturity amount is also tax-exempt. The interest rates for the small savings schemes are due for review on September 30, 2023. The rates will be applicable for the September- November quarter of FY2023-24.