PPF Interest Rate 2023-24 7.1% What is special for investors?

CollegeUnified By CollegeUnified 5 Min Read

PPF Interest rate 2023 : PPF is a famous and safe investment scheme that has been introduced for Indian citizens . It is a long term savings scheme which aims to provide a safe and profitable option to the people to generate income . In this blog post, we will go through the important aspects of PPF in detail and understand its benefits .

What is PPF?

PPF (Public Provident Fund) is a personal savings account provided by the government for Indian citizens . It is a long term investment in which you deposit money and get continuous interest on that money. This scheme is a good way to arrange income along with financial security PPF Interest Rate 2023

Important aspects of PPF:

1. Long – term investment : PPF account is a long term investment which is for 15 years , which you can compound. This means you have time for long term investments from which you can reap the benefits. 

2. Interest rate: The interest rate on PPF account is determined by the government from time to time and the current PPF Interest rate 2023 is 7.1% . This interest rate may change annually but can be availed till the end of the investment tenure. ppf calculator year wise

PPF Interest rate 2023

3. Tax benefits: Both interest and principal amount received on PPF investments are exempt from income tax. Even the interest earned on investment is tax free. PPF Interest Rate 2023

4. Minimum Investment: You need  a minimum investment to open a PPF account , which is usually ₹500.

5. A joint destination of savings and investment : PPF is not only a savings scheme , but it is also an investment scheme . Apart from saving your income by investing, you can also give it business potential .

PPF is a safe and profitable investment scheme that provides a great way for Indian citizens to manage financial security and steady income PPF Interest Rate 2023

PPF Who can open PPF Account and How to open PPF

PPF Interest rate 2023

PPF Account is an individual savings account that can be opened by anyone who is eligible as an Indian citizen . You can open a PPF account in the following ways :

1. Local banks: You can open a PPF account by visiting any local bank or financial institution . You are required to fill the application form and submit it along with the  required documents like PAN Card, Aadhaar Card, Passport etc.

2. Online : Some banks and financial institutions provide you the facility to open your PPF account online .You can apply by visiting their website and submit the required documents online .

3. Post Office: You can also open a PPF account by going to the post office . There you need to fill the application form and submit the required documents . PPF Interest Rate 2023

Documents required at the time of account opening:

  • Pan card 
  • Adhar card 
  • Passport or Voter Id Card ( required only in special situations )
  • Address Proof ( Can be on Aadhaar Card )

How to open PPF :

  1. Visit your selected bank, financial institution or post office . 
  2. Fill the application form for opening PPF account . 
  3. Submit the required documents and complete  the application process.
  4. You will get PPF account details , account number and passbook.

Public Provident Fund PPF Interest Rate 2023 :

1. A person can open only one PPF account . The money of PPF account goes to the government, so this investment is completely safe and guaranteed returns are also available. 

2. The best thing about Public Provident Fund (PPF) is that both the money invested in it and the interest earned from it are completely tax free . This means that you will not have to pay any tax on it . But more than Rs 1.50 lakh cannot be invested  in a PPF account in a year

3. PPF Account is closed in this period .This means that you will need to invest money for a long time . PPF Account has a maturity of 15 years . 

4. An investment or deposit is required every year to keep the PPF account running . If no deposit is made in the PPF account throughout the year , then the account gets closed . ₹50 penalty will have to be paid for restarting  

5. At least ₹ 500 can be invested in PPF Account in a year

6. Currently PPF Interest Rate 2023 is 7.1% , which is compound interest rate on annual basis, and the interest amount is deposited in PPF Account every year in March . 

7. We can also get loan from PPF Account . But loan can be availed on PPF account only after three years of account opening till six years of account opening . We can get  only 25 percent of our PPF account balance as loan .

8. Loan is available on PPF Account, whose interest rate is two percent more than the interest rate of PPF account . Means, the loan rate on PPF will be 9.10% right now, because currently 7.1 % PPF interest rate on PPF account 2023 l Whereas, if the loan is not repaid in 36 days , then six percent extra will have to be given. PPF Interest Rate 2023