PPF Interest Rate in 2023: 7.1% for April-June2023

The government left interest rate for the Public Provident Fund scheme unchanged for the April-June period of 2023. Consequently, PPF account holders will earn 7.1% interest on their PPF savings for this period.

Table of Contents

Latest PPF interest rate

Period	PPF interest rate in percentage
From 1 April 2023 to June 30 2023 From April 1, 2020, till March 31, 2023	7.1% 7.1%
From July 1, 2019, to March 31, 2020	7.9%
From October 1, 2018, to June 31, 2019	8%
From January 1, 2018, to September 30, 2018	7.6%
From July 1, 2017, to December 31, 2017	7.8%
From April 1, 2017, to June 30, 2017	7.9%
From October 1, 2016, March 31, 2017	8%
From April 1, 2016, to September 30, 2016	8.1%
From April 1, 2013, to March 31, 2016	8.7%
From April 1, 2012, to March 31, 2013	8.8%
From December 1, 2011, to March 31, 2012	8.6%
From March 1, 2003, to November 30, 2011	8%
From March 1, 2002, to February 28, 2003	9%
From March 1, 2001, to February 28, 2002	9.5%
From January 15, 2000, to February 28, 2001	11%
From April 1, 1999, to January 14, 2000	12%
From FY 1986-87 to FY 1998-99	12%
From 1985 to 1986	10%
From 1984 to 1985	9.5%
From 1983 to 1984	9%
From 1981-82 to 1982-83	8.5%
From 1980 to 1981	8%
From 1977-78 to 1979-80	7.5%
From August 1, 1974, to March 31 1977	7%
From April 1, 1974, to July 31, 1974	5.8%
From 1973 to 1974	5.3%
From 1970-71 to 1972-73	5%
From 1968-69 to 1969-70	4.%

See also: Everything you want to know about PF withdrawal

What is PPF?

Public Provident Fund or PPF is a government-run saving instrument that not only helps an Indian citizen save money but also cut down his tax liability under Section 80C of the Income Tax Act. An interest is offered, on the amount contributed by a PPF account holder to his PPF account, on his saving on an annual basis. PPF interest rate is decided by the Central government once every three months. For the June quarter of FY24, the government has maintained a status quo of PPF interest rates.

PPF interest rate: How is it calculated?

PPF interest rate is fixed by the Finance Ministry. PPF interest rate offered by banks is based on changes in rates by the Finance Ministry.
PPF interest is compounded annually.
PPF interest is calculated on a monthly basis, on the lowest balance in your account between the 5th day and the end of a month.
However, PPF interest is credited into your PPF account at the end of the financial year, on March 31.
PPF interest rate is calculated differently, depending on the frequency of payments – monthly or lump-sum. To increase gains, deposit money before the 5th of the month if you are depositing it in your PF account on a monthly basis. If you are depositing money as lump-sum every year, deposit it before April 5 of that year.

See also: All about the EPF scheme

PPF interest calculation formula

A = P [({(1+i) ^n}-1)/i]

Where:

A stands for maturity amount;

P stands for principal amount;

I stands for the expected interest rate;

N stands for the tenure for which the amount is invested.

FAQs

Who decides the PPF interest rate?

The central government decides the PPF interest rate quarterly.

What is the PPF interest rate in 2022?

The PPF interest rate is 7.1% in 2022.

How much amount can I invest in PPF in a year?

You can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakhs in a financial year in your PPF account.

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Sunita Mishra

An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.

In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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