Public Provident Fund Interest Rate 2018 and 50 Yrs History

What is the Public Provident Fund Interest Rate 2018? How often currently it is changing now? What is the historical interest rate of Public Provident Fund? How it affected you? Let us get answers to all these questions.

Public Provident Fund or PPF is one of the preferred product for many investors. In fact, I strongly advocate using this product as your debt part of the portfolio. It is 15 years product, with tax benefits at the time of investment and also at the time of maturity. Hence, consider this product only if your time horizon of the goal is more than 15 years.

I already wrote many articles about Public Provident Fund. Refer the same (list shared).

• All about Public Provident Fund (PPF)
• PPF-When to contribute to get higher returns?
• PPF-Loan and Withdrawal
• Excel PPF Calculator-Calculate goal, loan or withdrawal amounts
• How to transfer PPF Account from Post Office or Bank to another Post Office or Bank?
• 15 Rules of availing Loan against PPF (Public Provident Fund)
• PPF withdrawal rules & options after 15 years maturity
• Premature closure of PPF account – New Rules 2016
• PPF Account for Minor and Wife – Rules, Tax Benefits and Tricks

Public Provident Fund Interest Rate History of last 50 Years

Before jumping into the current interest rate, let us check the historical interest rate of PPF. PPF was launched in the year of 1968-69. Let us find out the historical returns of PPF or Public Provident Fund of last 50 years.

• From 1968-69 to 1969-70 it was 4.8%.
• From 1970-71 to 1972-73 it was 5%.
• Then it slowly raised and reached the peak of 12% during 1st April 1986-86 to 14th Jan 2000.
• Later on, it slowly reduced and settled at 8.7% during 2015-16.

If you are finding it difficult to see the above image, then you can refer the below table for the same.

Public Provident Fund Interest Rate History from 2016-17 onwards

Earlier the interest rates used to be announced on yearly once. However, now from 2016-17, the rate of interest will be fixed on a quarterly basis. I already wrote a detailed post on this. I am providing the links to those earlier posts below.

• Post Office Savings Schemes -Changes effective from 1st, April 2016
• Premature closure of PPF account – New Rules 2016

Based on these new changes, now onward interest rate will be declared on a quarterly basis. The earlier quarters (FY 2016-17 and FY 2017-18) interest rate can be viewed in my earlier posts “Interest of PPF KVP NSC SCSS and Sukanya Samriddhi for April-June 2016“, “PPF and Sukanya Samriddhi Scheme interest rate July-Sept 2016“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Oct-Dec 2016”, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Jan-Mar 2017“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates April-June 2017“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Oct-Dec 2017?., “Latest Post Office Small Saving Schemes Interest rates Jan-March 2018“, “Latest Post Office Small Saving Schemes Interest rates Apr-June 2018“ and “Latest Post Office Small Saving Schemes Interest rates July-Sept 2018“.

Below is the timetable for change in interest rates for all Post Office Savings Schemes.

Below is the interest rate movement of Public Provident Fund from 2016-17 to 2018-19.

I marked in green for the interest of PPF from 2018 onwards. You noticed that it started to lower from 1st quarter of 2016-17 and reached the lowest rate of 7.6%. Suddenly from the 3rd quarter of 2018-19, it stabilized and currently it is at 8%.

Public Provident Fund Interest Rate 2018

Let me now share with you Public Provident Fund Interest Rate 2018. I will show you the interest rate from 1st January 2018 to 31st December 2018. This is one full year. However, for PPF, the year means the financial year (i.e 1st April 2018 to 31st March 2019).

Below is the interest rate movement of Public Provident Fund interest rate from 1st Jan 2018 to 31st December 2018.

As I already pointed, the interest rate was low during the start of the year and it remained the same for 3 quarters. But from 1st October 2018, it is now offering you 8% returns.

Who can use the Public Provident Fund?

PPF or Public Provident Fund is the wonderful debt product. Because it offers the EEE (Exempt-Exempt-Exempt) feature to the investors.

The money you invest is eligible for tax deduction under Sec.80C (Up to Rs.1,50,000 currently).

The interest income earned every year is tax-free

The maturity amount is also completely tax-free.

But it does not mean that one must invest in this product because of safety and tax-free returns. As I already pointed above, you have to consider this as your debt portfolio. Also, the time horizon of the goal must be more than 15 years to align with maturity.

Otherwise, investing just for the sake of safety or tax benefits will never going to help you.