Good News for PPF Investors: Interest Rates Remain Steady

Investors in small savings schemes can breathe a sigh of relief as the government has decided to keep the interest rates unchanged for the July-September 2025 quarter. This includes the Public Provident Fund (PPF), National Savings Certificate (NSC), and Senior Citizen Savings Scheme (SCSS).

Why PPF Remains a Popular Choice

The PPF continues to be a favored long-term savings option due to its tax benefits, guaranteed returns, and government backing. The interest rate is reviewed quarterly, but the latest update confirms no changes for now.

Tax Advantages of PPF

PPF offers a triple tax-exempt status (EEE), making it an attractive option for tax-saving investments. Contributions up to Rs 1.5 lakh annually are deductible under Section 80C, the interest earned is tax-free, and the maturity amount is also exempt from tax.

Investment Limits and Rules

Minimum deposit: Rs 500 per financial year. Maximum deposit: Rs 1.5 lakh per financial year. Only one PPF account is allowed per individual, and inactive accounts can be revived with a penalty.

Maturity and Withdrawal Options

After 15 years, investors can withdraw the full amount or extend the account in five-year blocks. Partial withdrawals are permitted from the seventh year, offering flexibility for emergencies.

Final Thoughts

With stable interest rates, PPF remains a safe and tax-efficient investment choice amidst economic uncertainties.