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Currently, Public Provident Fund, abbreviated as PPF is paying interest at the rate of 7.1%. Now the government will decide the interest rate of small savings at the end of June.
The central government fixes the interest rate of a small savings scheme every quarter. Common people have long expected that the interest rate of PPF will increase. Now when the Modi government comes to power for the third time, it is to be seen whether the interest rate of PPF will be increased from 7.1 per cent to 12 per cent to increase investment and savings among the common people. There was a time earlier when PPF was earning 12% interest. But, at that time there were many rules associated with it.

Earlier 12% interest was available on PPF - There was a time when 12% interest was paid on government scheme PPF. But, at that time only Rs 40,000 could be deposited for 2 years or only Rs 60,000 for 12 years. PPF interest rate history shows that the interest rate on the Public Provident Fund Account has been increasing since 01.04.1986. It was 12% between 31.03.1988 and 01.04.1988 to 14.01.2000. The interest rate of PPF was 11% from 15.01.2000 to 28.02.2001.
Investment limit in PPF increased in 2014 -In the last 10 years, the interest rate on PPF has ranged from 7.1% to 8.8%. It was 8.80% between 01.04.2012 to 31.03.2013. The interest rate from 01.04.2013 to 31.03.2016 was 8.7%. However, the PPF deposit limit between 01.04.2013 to 31.03.2014 was Rs.1 lakh only. It has increased to Rs.1.5 lakh from 01.04.2014.
PPF started in 1968 - When the scheme was started in 1968, the interest rate on PPF was only 4.8 per cent. Where the maximum investment limit was only Rs 15,000. This deposit limit continued till 31.03.1972. However, the rate of interest was increased by 5% between 01.04.1970 and 31.03.1973.