There is a big update revealed regarding PPF. The government has maintained stable interest rates for all small savings schemes for the January-March 2025 quarter. Among these, the Public Provident Fund (PPF) stands out as one of the most favored options in the country, offering an interest rate of 7.1%. This rate will be effective from January 1, 2025, to March 31, 2025. The Department of Economic Affairs, under the Ministry of Finance, announced these rates on December 31, 2024.
How to open a PPF account?
Individuals can open just one PPF account at either a post office or a bank. Additionally, guardians have the option to open a PPF account for a minor or someone who is mentally challenged. This scheme is designed for long-term savings and also provides tax advantages.
Interest Calculation Rules
As per the Punjab National Bank (PNB) website, the monthly interest for PPF is calculated based on the deposits made by the 5th of each month. Interest is credited on the lowest balance in the account from the 5th until the end of the month.
Tax Advantages
Contributions to the PPF are tax-exempt up to Rs 1,50,000 under Section 80C of the Income Tax Act. Furthermore, both the interest earned and the maturity amount from the PPF are entirely tax-free, making it one of the top choices for tax-saving investments.
Interest Rates for Small Savings Schemes for January-March 2025
Savings Deposit: 4%
1-Year Post Office Time Deposit: 6.9%
2-Year Post Office Time Deposit: 7.0%
3-Year Post Office Time Deposit: 7.1%
5-Year Post Office Time Deposit: 7.5%
5-Year Recurring Deposit: 6.7%
National Savings Certificate (NSC): 7.7%
Kisan Vikas Patra (KVP): 7.5% (Maturity in 115 months)
Public Provident Fund (PPF): 7.1%
Sukanya Samriddhi Yojana (SSY): 8.2%
Senior Citizen Savings Scheme: 8.2%
Monthly Income Account: 7.4%
