History Of Reduction of Interest Rate on PPF (Public Provident Fund)
PPF Interest Rate: Public Provident Fund (PPF) attracts investors who are looking for guaranteed and tax-free returns. However, there has been a steady decline in PPF interest rates since 2013.
While the PPF investment limit was raised from Rs 1 lakh per annum to Rs 1.5 lakh per annum in 2014, the interest rate has been reduced by 1.7 per cent to 7.1 per cent from 8.8 per cent.
According to official data, this decline has come from 2013 to 2022. Let us know further when the interest rates of PPF have been reduced.
Review of Interest Rates on Quarterly Basis
The PPF interest rate is reviewed by the Ministry of Finance on a quarterly basis. Then they are amended. The interest rate for the next quarter of FY 2022-23 will be announced by the end of December 2022.
Interest Rate Decreased From Time to Time PPF Interest Rate in 2013
PPF interest rate between 01.04.2012 to 31.03.2013 was 8.8%. But then the maximum investment limit in it was Rs 1 lakh per year.
PPF Interest Rate in 2014
PPF interest rate between 01.04.2013 to 31.03.2014 was 8.7%. Even then the investment limit in PPF was Rs 1 lakh per year.
And the interest rate of PPF between 01.04.2014 to 31.03.2016 was 8.7 percent. But by then the limit of investment in PPF had gone up to Rs 1.5 lakh per year.
PPF Interest Rate in 2015 and 2016
The PPF interest rate was further reduced to 8.1% from 01.04.2016 to 30.09.2016, while the investment limit remained the same at Rs.1.5 lakh per annum.
Where Did the PPF Interest Rate Reach in 2017?
PPF interest rate further reduced between 01.10.2016 to 31.03.2017. Then it was reduced to 8 per cent. At that time also the investment limit in PPF was Rs 1.5 lakh per year.
Then the PPF interest rate further reduced to 7.9% from 01.04.2017 to 30.06.2017. Thereafter, the PPF interest rate was further reduced to 7.8% from 01.07.2017 to 30.09.2017.
What Was the PPF Interest Rate in 2018
PPF interest rate reduced to 7.6% between 01.01.2018 to 30.09.2018. The investment limit was still Rs 1.5 lakh per annum.
Then in 2019, the PPF interest rate was increased between 1.10.2018 to 30.06.2019. At that time the interest rate of PPF was increased to 8 percent. The investment limit remained Rs 1.5 lakh per year.
PPF Interest Rate in 2020
PPF interest rate has been reduced again between 01.07.2019 to 31.03.2020. Then it was reduced to 7.9 per cent. At that time also the investment limit was Rs 1.5 lakh per annum.
Interest Rate in 2021 and 2022
The interest rate on PPF has not changed since 01.04.2020 and remains at 7.1%. At the same time, the investment limit is also at Rs 1.5 lakh per year.
