Public Provident Fund (PPF) Deposit Interest Rate April-June 2023: The Finance Ministry has not changed the Public Provident Fund Deposit (PPF) interest rate for the first quarter of FY 2023-24 starting tomorrow (April 1). PPF account holders will continue to get 7.1% interest.
In the fourth quarter of FY 2022-23, the Government announced 7.1% interest on PPF deposits. However, the Government has increased the interest rates for some other small savings schemes like Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana, Kisan Vikas Patra, Post Office Fixed Deposits, Post Office Monthly Income Scheme and Post Office Recurring Deposit.
The PPF interest rate has remained at 7.1% for 12 quarters in a row. The Financial Express had earlier reported that the Government may keep the PPF interest rate unchanged in view of high tax-free returns from the scheme.
Also Read: Why you should still invest in Public Provident Fund (PPF)
Meanwhile, the interest rates for various small savings schemes have been increased by 10-70 basis points for April-June 2023. The highest increase has been in NSC, reflecting the transmission of policy rate hikes by RBI.
The upward revision in interest rates for small savings schemes is expected to boost domestic savings, which has fallen from a high of 36.9% of GDP in 2010-11 to an estimated 30.2% in 2021-22. According to analysts, it may be just 28.5% in 2022-23
The interest rates for various small savings schemes have now become higher than the SBI fixed deposit rates of various tenors. The SBI is currently offering 6-7% Fixed Deposit interest to general depositors, whereas the NSC rate has gone up to 7.7% and the SCSS rate has increased to 8.2%.
The Government revises interest rates for various small savings schemes on a quarterly basis. The next revision of the interest rates will happen by June 30, 2023.