PPF interest rate for 2019-20: What amount you will get in Public Provident Fund investment

The scheme introduced by the National Savings organisations in 1968, the Public Provident Fund was made to mobilize small savings. The Public Provident Fund or PPF is a popular long term investment method, strongly backed by the Government of India. The centre offers safety and security along with attractive interest rates. Moreover, the returns that one avails is exempted from Tax. 

For the first quarter of the financial year 2019-20, that is between April 1 to June 30, the interest rate remains 8% on PPF. It is the same as the interest in the last financial quarter of 2018-19. 

Individuals can invest minimum to Rs 500 or a maximum of Rs  1,50,000 per annum. In other terms, one can invest up to a maximum of Rs 12,500 per month. If excess, the amount will not earn any interest on it. Moreover, the amount will not eligible for rebate under Income Tax Act.

 Income Tax benefits are available under Sec 88 of IT Act. Interest income is totally exempt from Income Tax. The amount outstanding to the credit is fully exempted from Wealth Tax also.

So if one says invests the maximum amount per month, i.e Rs 12,500, the returns for the minimum duration of the scheme of 15 years will reap Rs 43,98,642. The interest of 85 will reap Rs 9,29,50,765 for a maturity period of 50 years. 

A PPF account can be opened by individuals in their own name or on behalf of a minor. The PPF scheme also has nomination facility available in its scheme wherein the subscriber can also determine the shares that go to each nominee.