New Delhi: For investors looking for safe and long-term investment options, opening a PPF account seems like a viable option. Being a mixture of security, returns and tax advantages, the
With a maturity of 15 years and offering decent interest rates as well as tax advantages, the PPF is among the priorities of small savers. But what makes it so popular?
According to
For the quarter ending March 31, 2022, the interest rate on the FPP is 7.1% per annum (compounded annually).
PPF interest rate over the years
01.04.1999 to 14.01.2000 – 12%
01.15.2000 to 02.28.2001 – 11%
03.01.2001 to 02.28.2002 – 9.5%
03.01.2002 to 02.28.2003 – 9%
03.01.2003 to 11.30.2011 – 8%
01.12.2011 to 31.03.2012 – 8.6%
04.01.2012 to 03.31.2013 – 8.8%
04.01.2013 to 03.31.2016 – 8.7%
04.01.2016 to 09.30.2016 – 8.1%
01.10.2016 to 31.03.2017 – 8%
04.01.2017 to 06.30.2017 -7.9%
07.01.2017 to 12.31.2017 – 7.8%
01.01.2018 to 30.09.2018 – 7.6%
01.10.2018 to 31.06.2019 – 8%
07.01.2019 to 03.31.2020 – 7.9%
04.01.2020 to 03.31.2022 – 7.1%
– An individual must make a minimum deposit of Rs 500 and a maximum deposit of Rs 1.50 lakh in a financial year.
– Under the maximum limit of Rs 1.50 lakh, an individual can make deposits to their own account as well as those made in the name of minors.
– Deposits can be made in multiples of Rs 50 in any number of installments within a financial year.
– An individual can open a PPF account in cash or by cheque. In the case of a cheque, the date of cashing of the check on the State account is the date of opening of the account/subsequent deposit in the account.
– A PPF account holder may claim the deduction of Section 80C of the Income Tax Act.
Interest rate calculation
The interest rate on the PPF account is set by the