A big update has come out regarding PPF, the popular scheme run by the central government for long-term investment. The government has maintained the interest rate on PPF in the April-June quarter. The interest rate on investment under the scheme has not been increased. Let us give you all the information related to the scheme and the interest rate on it.

PPF scheme i.e. Public Provident Fund Scheme is run by the government. Under this scheme, investors get tax-free interest on investments. Investment under the scheme is for 15 years. That is, the maturity period of the scheme is 15 years. PPF currently gives an annual fixed interest of 7.1 percent, which has not been increased by the government in the April-June quarter. The government reviews the interest received on the Public Provident Fund Scheme every quarter.

Small Saving Scheme

Many schemes are run by the central government to promote investment, which aims to encourage people to invest. One of those schemes is the Small Saving Scheme. Under this scheme, investors invest for 15 years and the special thing is that the investment is not affected by the fluctuations in the stock market and the increase or decrease in the interest rates of banks.

Tax exemption and minimum investment on PPF

Under PPF, investors are given tax exemption under Section 80C of the Income Tax Act, 1961. The minimum investment in this scheme is Rs 500 per annum and the maximum investment is Rs 1.5 lakh per annum. Under this scheme, the investors must deposit the investment annually. If someone misses his installment, then he has to invest for the remaining years with a penalty of Rs 50.

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