Public Provident Fund scheme interest rate 2023-24, PPF calculator: Investment scheme Public Provident Fund (PPF) has garnered much interest of the investors due to its number of benefits.
The government-backed scheme is one of the highest subscribed investment options offered by banks and post offices. It’s high compounding interest rate and EEE tax benefit has made it one of the most preferred options to park fund by a large number of taxpayers.
PPF scheme 2023: Why all parents must open PPF account for their kids?
1) Securing future: PPF is a long-term investment option with a 15-year lock-in period. The long investment period will not just help you in generating a huge corpus for your children till the time they turn 18 but it will also inculcate financial discipline in you.
2) Attractive rate of interest: The scheme has an attractive interest rate which are revised quarterly by the government. However, the current rate has not been revised for long time. The scheme provides security with competitive interest rates.
3) Tax-free returns: PPF comes under EEE scheme. EEE is Exempt Exempt Exempt category that is tax exemptions on investment, interest / return and maturity.
4) Risk free and guaranteed stable returns: PPF is a risk free government-backed investment scheme with promising returns due to its compounding power.
5) No restrictions on extensions: As soon as you your kid turns 18, they may choose to extend or withdraw the entire maturity amount. Extending the PPF account will be a major benefit since it’s interest is compounding on the total amount.
PPF interest rate 2023-24
The PPF interest rate for the April-June 2023 quarter is 7.1 per cent.
The government had earlier raised interest rates on various small savings schemes including Senior Citizen Savings Scheme, Monthly Income Savings Plan, National Savings Certificate, Kisan Vikas Patra, all post office time deposits, and Sukanya Samriddhi Account Scheme.
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PPF Calculator 2023
Your annual investment: Rs 1,50,000
Time period: 15 years
Current rate of interest: 7.1%
Invested amount: Rs 22,50,000
Total interest: Rs 18,18,209
Maturity Value: Rs 40,68,209
PPF vs Sukanya Samriddhi Yojana
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Sukanya Samriddhi Yojana is only for the girl child, however, if a parent is willing to open an account for the boy child they can opt to open the PPF account.
Sukanya Samriddhi Yojana and Public Provident Fund are two tax-efficient government savings programmes that provide competitive interest rates. Although SSY offers higher interest rates than PPF in the current quarter, both are suited for long-term corpus creation.
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Sukanya Samriddhi Yojana interest rate 2023-24
The Sukanya Samriddhi Yojana interest rate for the April-June 2023 quarter is 8 per cent.
