The PPF Account by large is one of the best savings account that the country has witnessed since 1964 even with a down fall of the interest rates in the recent past.
For those of you who are reading this article for the first time, I would suggest you to read what is ppf account
PPF is considered to be a “EEE” Triple E savings scheme – i,e the money deposited is exempted from income tax, the interest earned is exempted from income tax and finally the money withdrawn from the PPF Account is exempt from income tax. Hence even today citizens enjoy the benefit from PPF Account.
Every year, the Government of India decides the PPF Interest Rates and in turn announces to the public and then various nationalised and private banks update their interest rates and allows citizens to make the deposit in PPF Account.
Read More >>> PPF Interest Rate History
In a quest to make things transparent, the government announces the interest rates for various tax savings schemes and in this regard, the PPF Account Interest Rate 2017 – 2018 was also announced by Finance Minister during March – April 2017.
PPF Account Interest Rate 2017 – 18 was fixed at 7.9% ( Note this interest rate is valid b/w April – June 2017)
Note : Interest Rate for PPF Account now changes every quarter, even though the interest rate is decreasing year on year, I would suggest it is still one of the best tax savings instrument for years to come.
With the current interest rate on PPF Account being fixed at 7.9% if a person deposits 1,50,000 INR b/w April 1st – 5th in every financial year for the next 15 years the total amount deposited would be 22,50,000 INR and the total amount earned at the end of 15th Year would be 43,60,517 provided if the interest rate would be retained at 7.9% and the amount that can be withdrawn would be possible during the year 2031-32.
If you want to review the savings from PPF Account >>> Refer to PPF Account Calculator <<<