Provident Fund Alert: Interest Rate of Public Provident Fund Likely to Increase Before Dec 31

As the Centre 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 December 2022.

Public Provident Fund Latest Update: People, who have invested in Public Provident Fund, are likely to receive a piece of good news about PPF interest rate. They can expect an increase in the rate of interest before December 31 as the central government revises the interest rate of the Public Provident Fund (PPF) on a quarterly basis.

However, if there will be no change in the interest rate, then the same will apply to PPF deposits made in the first quarter of the new year. Currently, the interest rate on PPF deposits is 7.1 per cent.

Notably, the PPF account holders are expecting 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.

As the Centre 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 December 2022. Hence, the PPF interest rate applicable in the first quarter of the next year is expected to be known by December 31 at least.

Because of the increase in the repo rate by the RBI in May this year, bank loans have has become expensive. Interest in the savings scheme has also increased. However, the interest received in many government savings schemes, including PPF has not increased so far.

The interest rate on PPF was 7.4% in September 2018. Then, it increased to 8% in June 2019 but has started falling since then and now the current interest rate on PPF is 7.1%.

Because of the increase in repo rate by the Reserve Bank of India, several 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 as well.