What is Benefits of PPF account?

Public Provident Fund (PPF) is one of the most popular long-term saving schemes which focuses on inducing small savings like investments and accrue returns on the same. As a saving scheme by the government, PPF gives an agreeable rate of interest and returns on investments.

Is it good to invest in PPF now?

Experts say even though the yearly investment amount is limited to only Rs 1.5 lakh, PPF is among the safe fixed-income products. For conservative investors, it is an ideal option due to the fixed rate of return and predictability in the gains in PPF. The PPF account continues to earn tax-free interest after maturity.

Is PPF interest rate constant?

As of now the current PPF interest rate for July- September 2021 is 7.10\% which is compounded annually. Before this, the interest rate was the same at 7.10\% for July – September 2020. The PPF interest rate is set every year by the ministry of finance and is paid each year on 31st March.

What are the disadvantages of PPF?

Cons of PPF

• The lock-in period is long-term, i.e., for 15 years.
• Joint accounts are not permitted, i.e., one person can only handle one account except it is of a minor.
• NRIs and HUFs cannot open an open account.
• There is a maximum limit of Rs. 1.5 lakhs laid for depositing in a PPF account.
• There is no liquidity.

Will my PPF interest rate change every year?

Public Provident Funds (PPFs) are secured saving options you can open at banks or Post Office, with fixed interest offered by the government. Interest rates of PPF accounts are changed quarterly by the government. A PPF account usually is locked for 15 years, to mature.

What is the future of PPF interest?

7.1\%
How PPF Interest Rates have changed over the last 5 years?

Period	Interest Rate on PPF
January -March 2021	7.1\%
October -December 2020	7.1\%
July-September 2020	7.1\%
April-June 2020	7.1\%

Is PPF interest changes every year?

The interest rate offered on PPF could change every quarter. The interest rate on EPF is declared after the completion of the financial year. For example, for the contributions made in the financial year 2020-21, the rate will be declared in the current financial year.

Is PPF interest rate fixed or floating?

Interest payable on PPF is fixed quarterly by Ministry of Finance, Government of India from April 1st, 2016. Banks offer PPF accounts at the rate fixed by Indian Government. Current PPF interest rates offered by SBI, ICICI and all banks is 7.10\% as applicable from 1st Jul 2021.