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 offering an interest rate of 7.1% on it. This rate on PPF will be applicable from January 1, 2025 to March 31, 2025. The Department of Economic Affairs, Ministry of Finance had announced the interest on small savings schemes on December 31, 2024.
How to open PPF account?
Any person can open only one PPF account in a post office or bank. Apart from this, guardians 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 provides tax benefits.
Interest Calculation Rules
According to the website of Punjab National Bank (PNB), monthly interest in PPF is calculated on the money that is deposited in the account by the 5th of the month. Interest is paid on the minimum amount maintained in the account from the 5th of the month till 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 considered as one of the most tax saving investments.
Does one get interest on inactive PPF account?
Yes, the money deposited in the dormant account will continue to earn interest as per the interest rate applicable from time to time, whether the account holder reactivates it or not. This scheme helps PPF investors to create a big fund in the long run and save tax.
Now the interest rate on small savings scheme for 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 with the aim of encouraging 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 Plan: Like Monthly Income Account.
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