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 this. 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 Scheme on 31 December 2024.
How to open PPF account?
Any person can open only one PPF account in post office or bank. Apart from this, the guardian can also open a PPF account for a minor or a mentally unsound person. This scheme is a long term saving scheme. This scheme also gives tax benefits.
rule of interest calculation
According to the website of Punjab National Bank (PNB), monthly interest in PPF is calculated on the money which is deposited in the account by 5th of the month. Interest is paid on the minimum amount maintained in the account from 5th of the month till the end of the month.
tax benefit
Investment in PPF is tax free up to Rs 1,50,000 under Section 80C of the Income Tax Act. Also, the interest and maturity amount received from PPF is completely tax free. It is counted among the most tax saving investments.
Is interest available on inactive PPF account?
Yes, the money deposited in an inactive account will continue to earn interest as per the interest rate applicable from time to time, whether the account holder reactivates it or not. For PPF investors, this scheme is useful in creating a bigger fund in the long run and saving tax.
Now the interest rate on small savings scheme for the quarter 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 Saving Scheme: 8.2%
Monthly Income Account: 7.4%
small savings interest rate
Small savings schemes are run by the government, which aim to encourage citizens to save regularly. These are divided into three categories. First is savings deposit, second is social security schemes and third is monthly income plan.
Savings Deposit: Like PPF and Post Office Savings.
Social Security Schemes: Like Sukanya Samriddhi and Senior Citizen Savings Scheme.
Monthly Income Plan: Like monthly income account.
Poor quality clothes delivered in online shopping? Be careful, this is also fraud