Year Ender 2023: Interest on PPF has not increased for 3 years, investors were disappointed this year too, will there be a change in 2024?
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Year Ender 2023: Public Provident Fund (Public Provident Fund) is a popular option among small savings schemes. In this the investor gets many benefits simultaneously. Tax benefits and better returns along with low risk make this policy special. In such a situation, PPF is a great investment for long term small investment. However, investors have one complaint regarding this. The government has increased the interest rate on it from the year 2020 till now. However, during this period the interest rates of small savings scheme were increased. Financial advisor Vinay Chaudhary says that in the last quarter, the Central Government has increased the interest rates on investments in many schemes including Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC) and Sukanya Samriddhi Yojana (SSY). . In such a situation, it can be expected that the government can now give the gift of increase in interest rates on PPF to investors in the year 2024. However, the government will consider this only after the Lok Sabha elections. Currently, 7.1 percent interest is available on the amount deposited in PPF.
Why is interest expected to increase?
Financial advisor Vinay Chaudhary says that the government has made a formula to give interest on the amount deposited in PPF. The interest rates of Small Savings Scheme are linked to 10-year Government Securities of the Central Government. In common language it is called G-Sec. The interest rates of small savings scheme are decided on the basis of three months average return on G-Sec. According to the Finance Ministry, the PPF interest rate in a quarter is a spread of 25 basis points on the benchmark return of the last three months. 10-year G Sec returns have averaged 7.28% from September to October 2023. In such a situation, according to the government’s mathematics, the PPF interest rate for the January-March quarter should ideally be around 7.53%. This makes it clear that the interest rate on PPF is going to increase next year.
what is ppf
Public Provident Fund (PPF) was started on 1 July 1968. The Government of India had started this investment scheme to encourage personal savings and investment. PPF is a popular and safe investment scheme that provides an opportunity to the general public to invest money in a safe and reliable manner. In this, the investment is for a regular maturity period, which is 15 years, and it can be extended. Minimum amount has been fixed for opening an account in PPF. You can open your PPF account with just ₹500. Also, there is a limit on the maximum amount that can be deposited in a PPF account in a financial year. Currently, this limit is ₹1.5 lakh. This investment can be made in one go or in 12 installments. In this, the investor can get tax benefit up to Rs 1.50 lakh under Section 80C of Income Tax. You can withdraw money from the seventh year of investing in it. Another important thing in this is that the interest received on it and the amount received on maturity is completely tax-free.
You can open an account sitting at home
State Bank of India, the country’s largest government bank, is giving a great opportunity to its customers to open a Public Provident Fund Account (PPF Account). The bank has said that any customer can easily open a PPF account through online banking. To open an account, some easy steps have to be followed. After this your PPF account will be opened. Let us tell you that investment in PPF is made for a minimum of 15 years. This block can be extended up to five. You can withdraw money from your PPF account. Moreover, you can keep the investment growing and get more profits.
How to open PPF account in State Bank
To open a PPF account in State Bank of India, first log in to online banking. After this, select the option of Deposit and Investment. After this, the option of Public Provident Fund i.e. PPF account will appear in front of you. After this you will have to go to PPF Account Opening. After this, you will see the term and condition related to the PPF account in a left box on the screen. Read this and understand all the information. Next, select the option to agree. Then select the option to open PPF. After this your PPF account will be opened easily. You can deposit a minimum of Rs 500 to Rs 1,50,000 in a year in PPF account.
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