The government has increased interest rates on most small savings schemes for the April-June quarter of FY 2023-24. However, the interest rate on PPF remains unchanged at 7.1 per cent for the April-June quarter.
In the new financial year, the rules of Public Provident Fund (PPF), popular among employed people, have changed. Now PAN and Aadhaar number have been made mandatory for investors investing in this scheme. Earlier investment was allowed without submission of Aadhaar number. Apart from PPF, these new investment rules will also be applicable in other small savings schemes.
Interest blow: The government has increased interest rates on most small savings schemes for the April-June quarter of FY 2023-24. However, the interest rate on PPF remains unchanged at 7.1 per cent for the April-June quarter. The interest of this scheme has not increased for almost 12 quarters.
What is PPF Scheme: This scheme comes under Small Savings Scheme. Under this scheme, you can start investing from Rs.500. A maximum of Rs 1.5 lakh can be invested per year. The scheme has a lock-in period of 15 years. You can withdraw money before the lock-in period subject to certain conditions.
Tax exemption also: In this scheme, you can also get tax exemption under the old tax regime. Let us tell you that loan facility is also available on PPF. At the same time, if you want the benefit of more interest under the scheme, then the amount will have to be deposited between 1st to 4th of the month. This will also entitle you to the interest for the month you start the investment.
