PPF Interest Rate: The government has kept the interest rates of all small savings schemes stable for the January-March 2025 quarter. Public Provident Fund (PPF) is one of the most famous schemes in the country. The government is giving an interest rate of 7.1% on it
PPF Interest Rate: The government has kept the interest rates of all small savings schemes stable for the January-March 2025 quarter. Public Provident Fund (PPF) is one of the most famous schemes in the country. The government is giving an interest rate of 7.1% on it. This rate on PPF will be applicable from 1 January 2025 to 31 March 2025. The Department of Economic Affairs, Ministry of Finance had announced the interest on small savings scheme on 31 December 2024.
How to open a PPF account?
Any person can open only one PPF account in a post office or bank. Apart from this, the guardian can also open a PPF account for a minor or a mentally ill person. This scheme is a long term saving scheme. This scheme also gives tax benefits.
Rules for interest calculation
According to the website of Punjab National Bank (PNB), the monthly interest in PPF is calculated on the money that is deposited in the account by the 5th of the month. Interest is given on the minimum amount formed in the account from the 5th of the month to the end of the month.
Tax benefits
Investment made in PPF is tax free up to Rs 1,50,000 under section 80C of the Income Tax Act. Also, the interest and maturity money received from PPF is completely tax free. It is counted among the most tax saving investments.
Does interest get on inactive PPF account?
Yes, the money deposited in the inactive account will continue to get interest as per the interest rate applicable from time to time, whether the account holder activates it again or not. This scheme is useful for PPF investors to create a big fund and save tax in the long run.
Now the interest rate on small savings schemes for the January-March 2025 quarter
- 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%
Small Savings Interest Rate
Small savings schemes are run by the government, which The objective is to encourage citizens to save regularly. These are divided into three categories. First savings deposits, second social security schemes and third monthly income plans.
- Savings deposits: Like PPF and post office savings.
- Social security schemes: Like Sukanya Samriddhi and Senior Citizen Savings Scheme.
- Monthly income plans: Like Monthly Income Account.
Most Read Articles:
- Small Savings Scheme: Big update for PPF-SSY account holders, Government’s big decision on interest rates from Sukanya Samriddhi to PPF
- PPF Interest Rate: Big update for PPF account holders, Government announced about PPF interest, know immediately
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
