Public Provident Fund: Will the government give a gift to the investors investing in Public Provident Fund on 31 December 2024? Will the government end the injustice being done to PPF investors? The interest rates of Public Provident Fund were last increased in October 2018. Before the 2019 Lok Sabha elections , the interest rates on Public Provident Fund were increased to 8 percent. But since then the interest rates on PPF have never increased. That is, the interest rates of PPF have not been increased for more than 6 years. 

Higher interest on Sukanya Samriddhi, lower interest on PPF!  

After May 2022, when RBI increased the repo rate by 2.5 percent, banks also increased the interest rates on deposits. After this, the government also increased the interest rates on small savings schemes, Sukanya Samriddhi Scheme, Kisan Vikas Patra, National Savings Certificate, and other post office savings schemes. But the interest rates of Public Provident Fund were not increased, on which 7.1 percent interest is currently being given. Whereas 8.2 percent interest is being given on Sukanya Samriddhi Yojana. 

Interest on PPF did not increase after 2018 

The interest rate on Public Provident Fund was last increased in October 2018 and it was increased to 8 percent. But from the financial year 2020-21, it was reduced to 7.1 percent. When the interest rates on small savings schemes were cut by 50 to 140 basis points. In the last two years, the interest rates of small savings schemes have been increased but Public Provident Fund was kept out of this and no increase was made in its interest rates.  

Interest is getting less than formula rates 

RBI also admitted that the interest rate on PPF is 41 basis points or 0.41% less than the rates given on the basis of formula. A panel headed by former RBI Deputy Governor Shyamala Gopinath had recommended the government to give interest rates on small savings schemes based on the yield given on securities. 

Will I get a gift in the new year?

The question arises that why this discrimination between PPF investors and Sukanya Samriddhi Yojana investors? Will the government give a gift to PPF investors when it reviews the interest rates of small savings schemes for the fourth quarter of the financial year 2024-25 on December 31, 2024?