PPF: From 12% to 7.1% – Why this once sought-after tax-saving scheme no longer attracts middle-class investors

What would you say about an investment instrument that used to give 12 per cent interest a year and now offers only 7.1 per cent? A massive fall Before the turn of the century, PPF offered a whopping 12 per cent interest on investment. Tenure Interest April 1, 99 to Jan 14, 2000 12.0 Jan 15, 2000 to Feb 28, 2001 11.0 March 1, 2001 to Feb 28, 2002 9.5 March 1, 2002 to Feb 28, 2003 9 March 1, 2003 to Nov 30, 2011 8.0 Dec 1, 2011 to March 31, 2012 8.6 April 1, 2012 to March 31, 2013 8.8 April 1, 2013 to March 31, 2016 8.7 April 1, 2016 to Sept 30, 2016 8.1 Oct 1, 2016 to March 31, 2017 8.0 April 1 2017 to June 30, 2017 7.9 July 1, 2017 to Dec 31, 2017 7.8 Jan 1, 2018 to Sept 30, 2018 7.6 Oct 1, 2018 to June 30, 2019 8.0 July 1,2019 to March 31, 2020 7.9 April 1, 2020 to Dec 31, 2024 7.1 Jan 1, 2025 onwards 7.1 In April 2013, the interest rate declined to 8.7 per cent, which continued for the next three years. Although they rose marginally again to 8 per cent in Oct 2018, they only fell further, first to 7.9 per cent and finally to 7.1 per cent, which stands to date.