Public Provident Fund/PPF Rate of Interest :
PPF or Public Provident Fund, a long term investment for the investors looking for secure investing options. You get a fixed rate of interest on the amount invested and you enjoy tax benefits as well.
PPF Rate of Interest is decided by the Government of India and revisions are made on timely basis. PPF amount yields a fixed rate of interest. PPF Interest for the first 2 quarters of F.Y.2016-17 was 8.1% p.a.
PPF interest rate was further lowered by 0.1 percent for 3rd Quarter of F.Y.2016-17. So, PPF interest rate for 3rd and 4th Quarters of F.Y.2016-17 was reduced to 8 % per annum.
The PPF interest rate for 1st quarter of Financial year 2017-18 has been further revised and lowered by 0.1%. Hence, the interest rate on PPF for the quarter April 2017 to June 2017 is 7.9% per annum.
The interest rate was reduced to 7.8% per annum from Oct’17 to Dec’17. PPF Interest rate has been further revised to 7.6% per annum for Jan’18 to March’18.
Following is the summary of PPF interest rates for past few quarters :
|Period||PPF Annual Rate of Interest|
|1st Jan'19 to 31st March'19||8%|
|1st Oct'18 to 31st Dec'18||8%|
|1st July to 30th Sept'18||7.6%|
|1st Apr'18 to 30th Jun'18||7.6%|
|1st Jan'18 to 31st March'18||7.6%|
|1st Oct'17 to 31st Dec'17||7.8%|
|1st Jul'17 to 30th Sep'17||7.8%|
|1st Apr'17 to 30th Jun'17||7.9%|
|1st Jan'17 to 31st Mar'17||8%|
|1st Oct'16 to 31st Dec'16||8%|
|1st Jul'16 to 30th Sep'16||8.1%|
|1st Apr'16 to 30th Jun'16||8.1%|
|1st Apr'15 to 31st March'16||8.7%|
How Interest is calculated on PPF or Public Provident Fund ?
The PPF or Public Provident Fund interest is compounded annually. But,the calculation of interest is done on monthly basis and the same is credited at year end. Interest is calculated on the lower of the balance held on the 5th of a month to the end of that particular month.
Opening a PPF Account : Key Features to Know
- PPF is a long term investment option with a lockin period of 15 years.Premature withdrawal is allowed subject to specific conditions only.
- Minimum annual investment required is Rs.500.
- Maximum annual investment can be upto Rs.1.5 lakhs only.
- PPF Interest rate was reduced to 7.6% p.a. from Jan’18. The interest is given at this rate presently.
- Only one PPF Account is allowed per person.You can open PPF Account in the name of a minor, that shall be handled by his/her guardian.
- You get an Income Tax Deduction under section 80C of The Income Tax Act for the amount contributed towards PPF upto Rs.1.5 lakhs during a financial year.
- The PPF interest earned and PPF maturity amount are also tax free, that is the main reason why investors are attracted towards this long term investment option.
For a detailed analysis on PPF you can refer our blog post : PPF Account,PPF Interest rate,PPF Rules,PPF Calculator – The Ultimate guide !
For calculating your PPF maturity amount, you can use the following PPF Calculator that will help you calculate your Principal and PPF Interest amount based on few assumptions :