3 Deciding Factors For Public Provident Fund (PPF) Income

Photos: Pexels/Pixabay Photos: Pexels/Pixabay Aug 08, 2023 Rajeev Kumar

Millions of Indians are investing in the Public Provident Fund scheme. The scheme provides tax-efficient returns that depend on three primary factors. Let’s have a look:

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PPF interest is not fixed. Income from this scheme depends a lot on the interest rate, which is subject to quarterly revision by the Government.

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As the PPF interest is compounded on a yearly basis, the duration of investment determines the final amount. Compounding works like magic in the long term in case of PPF.

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The maturity amount you can withdraw from PPF depends a lot on how much you have contributed to the scheme on a yearly basis.

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The maturity amount or the income from investing in this scheme will always be higher if the interest rate, deposit amount and investment duration are also high.

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The interest rate for Public Provident Fund has not changed since April 1, 2020.

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Currently, PPF scheme offers 7.1% interest rate and allows individuals to invest up to Rs 1.5 lakh per year.

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3 Deciding Factors For Public Provident Fund (PPF) Income

3 Deciding Factors For Public Provident Fund (PPF) Income

Millions of Indians are investing in the Public Provident Fund scheme. The scheme provides tax-efficient returns that depend on three primary factors. Let’s have a look:

Millions of Indians are investing in the Public Provident Fund scheme. The scheme provides tax-efficient returns that depend on three primary factors. Let’s have a look:

PPF interest is not fixed. Income from this scheme depends a lot on the interest rate, which is subject to quarterly revision by the Government.

PPF interest is not fixed. Income from this scheme depends a lot on the interest rate, which is subject to quarterly revision by the Government.

1. Interest Rate

1. Interest Rate

As the PPF interest is compounded on a yearly basis, the duration of investment determines the final amount. Compounding works like magic in the long term in case of PPF.

As the PPF interest is compounded on a yearly basis, the duration of investment determines the final amount. Compounding works like magic in the long term in case of PPF.

2. Investment Duration

2. Investment Duration

The maturity amount you can withdraw from PPF depends a lot on how much you have contributed to the scheme on a yearly basis.

The maturity amount you can withdraw from PPF depends a lot on how much you have contributed to the scheme on a yearly basis.

3. Investment Amount

3. Investment Amount

The maturity amount or the income from investing in this scheme will always be higher if the interest rate, deposit amount and investment duration are also high.

The maturity amount or the income from investing in this scheme will always be higher if the interest rate, deposit amount and investment duration are also high.

The interest rate for Public Provident Fund has not changed since April 1, 2020.

The interest rate for Public Provident Fund has not changed since April 1, 2020.

Currently, PPF scheme offers 7.1% interest rate and allows individuals to invest up to Rs 1.5 lakh per year.

Currently, PPF scheme offers 7.1% interest rate and allows individuals to invest up to Rs 1.5 lakh per year.