PPF Interest Rates: Check Current Interest Rates on PPF

A PPF or Public Provident Fund is a savings scheme offered by the Government of India. It continues to be a favourite savings avenue for many investors. After all, the principal and the interest earned have a sovereign guarantee and the returns are tax-free. The principal invested in the PPF qualifies for deduction under Section 80C of the Income Tax Act, 1961 and the interest earned is tax exempt as well under Section 10. It is tax-free. PPF is a 15-year scheme, which can be extended indefinitely in a block of 5 years. It can be opened in a designated post office or a bank branch. It can also be opened online with few banks. One is allowed to transfer a PPF account from a post office to a bank or vice versa. A person of any age can open a PPF account; even those with an EPF account can open one. PPF Interest Rates are also set by the central government.

Importance of Opening a PPF Account:

  • The principal and interest in the PPF account are guaranteed by the Government.
  • Contributions to the account up to Rs 1.5 lakh per annum are tax-free. Interest on the PPF account is also tax-free.
  • Interest Rate for the PPF account is declared by the Government every quarter. PPF returns are higher than FD rates of many banks in that period.
  • The PPF account is immune from attachment from any order or decree of any court under the Government Savings Banks Act, 1873.

Documents Needed:

  • PPF Account opening Form (Form A), the same can be obtained from specified bank branches or can be downloaded online.
  • ID proof
  • Address proof
  • Photograph of the account holder
  • Nomination form

Earlier, PPF Interest Rates were fixed each year but are now set on a quarterly basis (every three months). The applicable PPF interest rate for 1st April to 30th June 2019 has been fixed at 8%. The interest rate for January – March 2019 was also 8%.

For the July-September quarter, the interest rate on Public Provident (PPF), Senior Citizen Savings Scheme, Sukanya Samriddhi, National Savings Certificate (NSC) and other small savings schemes have been revised lower. PPF will fetch a 7.9% interest rate (compounded annually) for the July-September quarter.

  • Sukanya Samriddhi Account and Senior Citizen Savings Scheme will continue to fetch higher rates than other schemes. The girl child savings scheme Sukanya Samriddhi Account will fetch 8.4% (compounded annually), from 8.5% earlier.
  • The Senior Citizen Savings Scheme is a popular small savings scheme meant for providing regular, risk-free income to senior citizens (age 60 or more). The interest payout is on a quarterly basis. The five-year Senior Citizens Savings Scheme will now fetch a lower rate of interest at 8.6%, from 8.7% earlier.
  • A five-year small savings scheme, NSC will fetch an interest rate of 7.9%, revised from 8% earlier. The amount is compounded annually and paid on maturity.
  • Kisan Vikas Patra (KVP) will fetch an interest rate of 7.6% (compounded annually) with a maturity of 113 months. Or, in other others, investments will double in 113 months as compared to 112 months earlier.
  • The five-year Post Office Monthly Income Scheme (MIS), where interest is paid out monthly, will fetch 7.6% as compared to 7.7% earlier.
  • Post office term deposits of 1-3 years will fetch an interest rate of 6.9% while the five-year has been pegged at 7.7%. Post office 5-year recurring deposits will fetch 7.2% (quarterly compounding), from the existing rate of 7.3%.

PPF Interest Rates Eligible Banks:

  • Axis Bank
  • ICICI Bank
  • HDFC Bank
  • State Bank of India
  • PNB
  • Canara Bank
  • Indian Bank
  • UCO Bank
  • Bank of India
  • Bank of Baroda
  • Allahabad Bank
  • Central Bank of India
  • Union Bank of India
  • Andhra Bank
  • Corporation Bank
  • Dena Bank
  • Indian Overseas Bank
  • Syndicate Bank
  • UCO Bank
  • United Bank of India
  • Vijaya Bank
  • IDBI Bank

 

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