PPF interest: The government-backed Public Provident Fund (PPF) is widely known for offering assured returns, making it a preferred choice among conservative investors. The Ministry of Finance revises the PPF interest rate, along with rates for other small savings schemes, quarterly.
What is the current PPF interest rate?
The interest rate on a PPF savings account for the July to September quarter is 7.1 per cent. As per a notification by the Department of Economic Affairs released on 30 June 2025, the interest rates for multiple small savings schemes, including PPF, remain unchanged for the sixth consecutive quarter starting 1 July 2025.
The notification read, “The rates of interest on various Small Savings Schemes for the second quarter of FY 2025-26 starting from 1 July 2025 and ending on 30 September 2025 shall remain unchanged from those notified for the first quarter (April to June) of FY 2025-26.”
Does PPF offer tax benefits?
PPF falls under the tax Exempt-Exempt-Exempt (EEE) status. Therefore, all deposits into PPF are deductible under Section 80C of the Income Tax Act. In the EEE category, your investment, the interest earned, and income at withdrawal are all non-taxable.
Other features of PPF
PPF is a small savings scheme launched by the Government of India. Individuals can invest between ₹500 and ₹1.5 lakh either in instalments or as a lump sum. However, if the minimum deposit of ₹500 is not made within a financial year, the PPF account will be discontinued.
PPF has a lock-in period of 15 years, with partial withdrawals allowed from the fifth year onwards. Due to the government’s backing, investors typically consider PPF credible, making it a secure long-term investment option.
Disclaimer: This is an educational article and should not be considered an investment strategy. We advise investors to check with certified experts before making any investment decisions.