The Public Provident Fund (PPF) is a long-term savings scheme supported by the Government of India. It is known for being one of the safest investment options available. The PPF offers tax benefits, steady interest earnings, and is best suited for individuals who want to save money for their future in a risk-free way. It is especially popular among salaried and middle-class families because of its tax-free returns.
Triple Tax Benefits (EEE Status)
One of the most attractive features of the PPF scheme is its EEE status—which stands for Exempt-Exempt-Exempt. This means:
The money you invest is tax-deductible under Section 80C of the Income Tax Act.
The interest earned every year is tax-free.
The amount you get at maturity is also fully tax-free.
This triple exemption makes PPF a smart choice for people who want to save money without worrying about taxes.
PPF Interest Rate for April-June 2025
The government reviews the interest rates on small savings schemes every three months. However, for the fifth time in a row, the interest rate on PPF has not changed. For the quarter from April 1 to June 30, 2025, the PPF interest rate remains at 7.1% per annum. This rate is compounded annually, helping investors grow their savings over time.
PPF Calculator Example (Based on SBI Tool)
To understand how much your investment can grow with PPF, here is an example:
Yearly Deposit: ₹1,50,000
Duration: 15 years
Total Investment: ₹22,50,000
Total Interest Earned: ₹18,18,209
Maturity Amount: ₹40,68,209
This shows that consistent investment in PPF over a 15-year period can lead to significant wealth accumulation, without any tax deduction on maturity.
Key Features of the PPF Scheme
Here are the main features of the Public Provident Fund scheme:
Tenure: 15 years (can be extended in blocks of 5 years)
Minimum Deposit: ₹500 per year
Maximum Deposit: ₹1.5 lakh per year
Tax Benefits: Under Section 80C (up to ₹1.5 lakh)
Interest Rate: 7.1% (April-June 2025)
Loan Facility: Available after 3 years
Partial Withdrawal: Allowed after 5 years
Who Can Open a PPF Account?
The PPF account is available to the following:
Any resident Indian individual can open a PPF account.
Parents or legal guardians can also open PPF accounts on behalf of their minor children.
Only one PPF account is allowed per individual (excluding minor accounts).
Interest Rates for Other Small Savings Schemes
Along with PPF, interest rates for other small savings schemes have also remained unchanged for April-June 2025. Here are some key interest rates:
Also Read:
Travel Just Got Cheaper: Govt Declares 120+ Roads Toll-Free from 2025 – Toll Charges Removed
Savings Deposit: 4%
1-Year Time Deposit: 6.9%
5-Year Time Deposit: 7.5%
Recurring Deposit (5 years): 6.7%
Senior Citizen Savings Scheme: 8.2%
Monthly Income Scheme: 7.4%
National Savings Certificate (NSC): 7.7%
Kisan Vikas Patra (KVP): 7.5% (matures in 115 months)
Sukanya Samriddhi Account: 8.2%
What Does the Unchanged Rate Mean for Investors?
Even though the interest rates have not increased, investors can still benefit from safe and steady returns. These schemes are run through banks and post offices, making them easily accessible. They are ideal for people who want guaranteed returns without taking any market risks.
Conclusion
The Public Provident Fund remains a trusted and tax-free investment option in India. With the interest rate fixed at 7.1% for April to June 2025, it continues to be a solid choice for those looking to build a long-term savings plan. People who want higher interest can also look into schemes like the Senior Citizen Savings Scheme or Sukanya Samriddhi Account, which offer 8.2% interest. Whether you are saving for retirement, your child’s future, or long-term goals, PPF is a safe and rewarding option.
