Customers, who have invested in the form of the Public Provident Fund, can expect an increase in the rate of interest before December 31. If there is no change in the rate, the same will apply to PPF deposits made in the first quarter of the new year. At present, the current interest rate on PPF deposits is 7.1 per cent.
In fact, PPF account holders are anticipating a change in the interest rates received in the Public Provident Fund along with the Reserve Bank of India’s increase in the repo rate. In comparison to PPF, many banks now also offer fixed deposit schemes with higher interest rates.
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The central government revises the interest rate of the Public Provident Fund (PPF) on a quarterly basis. The next revision in the PPF interest rate is due to take place by the end of this month. Hence, the PPF interest rate applicable in the first quarter of the next year is expected to be known by December 31.
Due to the continuous increase in the repo rate by the RBI in May this year, a bank loan has become expensive. Interest in the savings scheme has also increased. Despite this, the interest received in many government savings schemes, including PPF has not increased.
In September 2018, the interest rate on PPF was 7.4%. It increased to 8% in June 2019 but has started falling since then and now the current interest rate on PPF is 7.1%.
Read More: EPFO E-Nomination Process: How To Add Or Change Nominee to Your PF Account
Due to the increase in repo rate by the Reserve Bank of India, banks have increased interest rates on fixed deposits of different durations. Now, the interest received on FD in government and private banks has gone up to about 8 percent. At the same time, some banks and financial institutions are offering up to 9 percent interest on FDs to senior citizens.
