Interest Rates for Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY)

The interest rates for the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) in India are periodically reviewed and announced by the Ministry of Finance. As of the fiscal year 2023-2024, the current interest rates are as follows:

Public Provident Fund (PPF)

Interest Rate: The interest rate for PPF is currently 7.10% per annum, compounded annually.

Details: PPF is a long-term investment option backed by the government of India, offering attractive interest rates and tax benefits under Section 80C of the Income Tax Act. The tenure of a PPF account is 15 years, which can be extended in blocks of 5 years indefinitely.

Sukanya Samriddhi Yojana (SSY)

Interest Rate: The interest rate for SSY is currently 8.20% per annum, compounds annually.

Details: SSY is a government-backed savings scheme aimed at the parents of girl children. It offers higher interest rates compared to other government savings schemes and provides tax benefits under Section 80C. Contributions made to SSY qualify for tax benefits under Section 80C, and the interest earned and maturity proceeds are tax-exempt. The account can be opened for a girl child below the age of 10, with a maturity period of 21 years from the date of account opening or until marriage, whichever is earlier.

Additional Information

Interest Rate Review: The interest rates for both PPF and SSY are reviewed and announced by the Ministry of Finance every quarter.

Tax Benefits: Both PPF and SSY offer tax benefits under Section 80C of the Income Tax Act. The interest earned is also tax-free in both cases.

Comparison of PPF and SSY

PPF: This scheme is suitable for individuals looking for a long-term secure investment with decent returns and tax benefits.

SSY: Specifically designed for the girl child, providing higher interest rates and long-term benefits along with tax exemptions.

Up-to-Date Information

For the most up-to-date interest rates, it is advisable to refer to official government notifications or visit the official websites of the Ministry of Finance or relevant financial institutions.

In conclusion, both Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are popular savings schemes in India, each offering attractive interest rates and tax benefits. They are considered safe investment options due to their sovereign guarantee, and provide attractive returns with tax benefits, making them favorable long-term savings avenues.