The Public Provident Fund (PPF) is a long-term savings scheme supported by the Government of India, offering safe investment options with tax benefits. The PPF scheme is especially popular because of its triple tax exemption (EEE status)—meaning that deposits, interest earned, and maturity proceeds are all tax-free.
The government reviews and updates interest rates on small savings schemes every quarter. However, for the fifth straight quarter, the government has kept the interest rates unchanged for various schemes, including PPF, for the period April 1 to June 30, 2025.
Current PPF Interest Rate
For the April-June 2025 quarter, the PPF interest rate remains at 7.1% per annum.
PPF Calculator Example (SBI)
According to the PPF Calculator available on the State Bank of India (SBI) website, if an individual deposits ₹1,50,000 annually for 15 years, the investment will grow as follows:
- Total Invested Amount: ₹22,50,000
- Interest Earned: ₹18,18,209
- Total Maturity Amount: ₹40,68,209
Key Features of PPF
- Tenure: 15 years (extendable in blocks of 5 years)
- Minimum Deposit: ₹500 per year
- Maximum Deposit: ₹1.5 lakh per year
- Tax Benefits: Investments qualify for tax deductions under Section 80C of the Income Tax Act
- Loan & Withdrawal Facility: Partial withdrawal allowed after certain years
PPF Eligibility
- Resident Indian individuals are eligible to open a PPF account.
- Minors: Parents or legal guardians can open a PPF account on behalf of a minor child.
- Only one PPF account is allowed per person, except in the case of minor accounts.
Interest Rates for Small Savings Schemes (April-June 2025)
The interest rates for various small savings schemes have remained unchanged for the fifth consecutive quarter, as per a notification by the Finance Ministry.
Key Interest Rates for Small Savings Schemes
- Savings Deposit: 4%
- 1-Year Time Deposit: 6.9%
- 2-Year Time Deposit: 7.0%
- 3-Year Time Deposit: 7.1%
- 5-Year Time Deposit: 7.5%
- 5-Year Recurring Deposit: 6.7%
- Senior Citizen Savings Scheme: 8.2%
- Monthly Income Account Scheme: 7.4%
- National Savings Certificate (NSC): 7.7%
- Public Provident Fund (PPF): 7.1%
- Kisan Vikas Patra (KVP): 7.5% (Matures in 115 months)
- Sukanya Samriddhi Account: 8.2%
Impact of Unchanged Interest Rates
The decision to maintain the same interest rates for small savings schemes will help investors continue earning steady returns. These schemes, operated primarily by post offices and banks, are a safe option for individuals looking to secure their savings with guaranteed returns.
Conclusion
The PPF scheme and small savings schemes continue to be reliable investment options for individuals looking for stable and risk-free returns. With unchanged interest rates for the April-June 2025 quarter, investors can still benefit from steady growth and tax advantages. Those looking for higher returns may explore options like the Senior Citizen Savings Scheme (8.2%) or Sukanya Samriddhi Account (8.2%), while those prioritizing liquidity and security can consider PPF (7.1%) and NSC (7.7%).
Disclaimer: The information provided in this article is for general informational purposes only. While we strive for accuracy, we do not guarantee the completeness, reliability, or timeliness of the content. Readers are advised to verify details from official sources before making any decisions.