Increasing inflation and repo rate is hiked by the RBI, PPF holders are expecting an upward revision in Public Provident Fund interest rate. Even several banks are offering higher interest rate on Fixed Deposit scheme than PPF.

Currently, the interest rate on PPF is 7.1%, it will remain the same by December 31 if there's no change, and the same would be applicable to PPF deposits in the first quarter of 2023.

The Government revises PPF interest rate on quarterly basis. The next revision of interest rate will take place by the end of this year, 2022. So, the new interest rate will be applicable in the first quarter of 2023 (January-March), known by December 31, 2022.

Benefits of PPF in 2023

Higher returns

As compared to general fixed deposit interest rates, PPF interest rate is generally higher. The current rate of PPF is 7.1% which is higher than many bank FDs.

Loan facility

You can easily get a loan against PPF deposits, once a year. On repaying the loan within 36 months, an interest rate of 1% will be applicable. In case, if it's repaid after 36 months, then interest rate of 6% will be applied.

Guaranteed returns

These deposits enjoy a sovereign guarantee. Therefore, if the bank or post office fails, your deposits will be secure.

Triple tax benefits

The amount deposited in PPF account, amount withdrawn, and interest earned will be exempted from taxes.