What is the probability of PPF’s interest rates staying stable 5 to 10 years from now .

[Akash]

PPF has a tenure of 15 years . We select a Figure and invest it and we calculate it on the current interest rate and plan accordingly to the amount we will receive on the maturity. Even when we use ppf calculator its the same thing we have a final goal in mind and we work towards it by investing consistently. Every month or year . But If the rates drop in the near future which will eventually happen it will drastically affect our outcome . So how do we know that that will be stable.How Low Do you guys think it may drop in the coming 15 years.

 

[anuragmukherjee28]

PPF has a tenure of 15 years . We select a Figure and invest it and we calculate it on the current interest rate and plan accordingly to the amount we will receive on the maturity. Even when we use ppf calculator its the same thing we have a final goal in mind and we work towards it by investing consistently. Every month or year . But If the rates drop in the near future which will eventually happen it will drastically affect our outcome . So how do we know that that will be stable.View attachment 19How Low Do you guys think it may drop in the coming 15 years.

the interest would be eventually be similar to the FD rates

 

[Akash]

the interest would be eventually be similar to the FD rates

Then FD would be a better option for short term deposits . But PPF’s have tax redemptions So they will be better .

 

[anuragmukherjee28]

Then FD would be a better option for short term deposits . But PPF’s have tax redemptions So they will be better .

yess, I was just talking about the interest rates, the use cases are very different

 

[Akash]

Then FD would be a better option for short term deposits . It’s possible that it may drop below that too due to the market volatility.But PPF’s have tax redemptions So they will be better .

 

[arjungoyal12]

Banks just want to earn more money and give less to the depositors

 

[Utkarsh Sharma]

Possibility of rates remaining same is high.

 

[arjungoyal12]

Possibility of rates remaining same is high.

How can you say it with so determination?

 

[ShavirB]

PPF has a tenure of 15 years . We select a Figure and invest it and we calculate it on the current interest rate and plan accordingly to the amount we will receive on the maturity. Even when we use ppf calculator its the same thing we have a final goal in mind and we work towards it by investing consistently. Every month or year . But If the rates drop in the near future which will eventually happen it will drastically affect our outcome . So how do we know that that will be stable.View attachment 19How Low Do you guys think it may drop in the coming 15 years.

Hey @Akash, Great Question! As economies move from become Developing to Developed generally the Interest Rates start declining. Which is why we have seen decades of ZERO Interest Rates in the U.S and Europe. As Indian Economy is progressing there is only way Interest Rates are going to go (downwards). This is why I feel that the possibility of PPF rates remaining at similar level is quite low.

P.S - I'm ignoring the short term movement in Interest Rate Cycles, as observed in the last 2-3 years.