Was PPF interest rate changed for April-June 2025?

The Public Provident Fund (PPF) is one of India's most popular long-term investment options. It offers tax benefits, safety due to sovereign backing, and guaranteed returns. PPF comes with a 15-year lock-in period and EEE tax status (Exempt-Exempt-Exempt). Many investors invest in PPF due to the tax-free interest and maturity amount.

The interest rate on small savings schemes, including PPF, is reviewed and revised by the government every quarter.

Was the interest rate for PPF changed for April-June 2025 quarter?
The government kept the interest rate unchanged for all the small savings schemes. Hence, there is no change in the PPF Interest rate for the current quarter. The PPF scheme will continue to offer 7.1% per annum for April-June quarter of 2025.

Earn extra tax-free interest by doing this
PPF Deposits must be made before the 5th of every month or April 5 (for lump sum) to earn maximum tax-free interest. PPF interest is calculated on the lowest balance between the 5th and the last day of each month. To maximize returns, deposit funds before the 5th of the month or April 5th to ensure they earn interest for the full month.

PPF deposit: You can earn this much extra tax free interest on PPF by depositing before April 5

Key features of the PPF scheme
Any resident individual can open a PPF scheme account. However, an individual can open only one PPF scheme account. A PPF accounts can be opened in different banks or post offices. If multiple PPF accounts are opened, one may have to be closed or merged.

The scheme rule allows an individual to deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. Investors should make a minimum deposit every year to ensure that the PPF account remains active. A deactivated account can be reactivated by paying Rs 500 for each missed year and a penalty of Rs 50 per year.

Govt announces interest rates for post office savings scheme for April- June 2025: Check latest PPF, NSC interest rate

The interest in a PPF account balance is calculated monthly, but the interest earned is credited at the end of the financial year. Hence, you should update your PPF passbook every year in April to check the interest you have earned due to PPF deposits.

PPF maturity: Can you extend the PPF account beyond 15 years?
The PPF account matures after the completion of 15 years from the end of the financial year in which the PPF account was opened. However, once the PPF account is matured, the account can be extended indefinitely in blocks of 5 years. You can choose to continue with or without contributions after the 15-year period. If you continue depositing money in the PPF account, you will keep earning interest on both the balance and new deposits.

Partial withdrawal rules from PPF
PPF is often seen as a locked-in investment, but partial withdrawals are permitted from the 7th financial year onwards. The amount you can withdraw is the lower of 50% of the balance at the end of the 4th year or the previous year's balance. Withdrawals can be useful for emergencies, education, or medical expenses.

Tax Benefits of PPF
Investments made in a PPF account are eligible for a tax deduction under Section 80C of the Income Tax Act, 1961. The interest in the PPF account is compounded annually and credited to the account at the end of the financial year.

PPF falls under the EEE (Exempt-Exempt-Exempt) category, meaning:
Contributions are tax-deductible (under Section 80C).
Interest earned is tax-free.
Maturity amount is completely tax-free. Partial withdrawals are allowed from the 7th financial year onwards. There is no tax on partial withdrawals.