October 3, 2025

Hold on tight, PPF fans! The Ministry of Finance has announced that the Public Provident Fund (PPF) interest rate will remain unchanged at a sparkling 7.1% for the October to December 2025 quarter. This small savings scheme, popular with millions, lets you open accounts in post offices or banks – and guess what? The interest rate stays the same in both places. How does the interest work? Per the India Post website, interest is calculated every month based on the lowest balance between the 5th day and the month-end. Then, all that juicy interest is credited once every financial year – adding sweet fuel to your savings! Wondering about maturity? A PPF account matures after 15 financial years (not counting the year you opened it). When your account matures, you can either withdraw it all, keep the account without new deposits, or extend it with fresh investments. But remember, you can't extend if the account has been discontinued. Speaking of discontinuation, if you fail to deposit at least Rs 500 in any financial year, your PPF account is marked discontinued — no more loans or withdrawals until you fix it by paying the missed deposits plus a default fee. Got a PPF account in your name and worried what happens after you? Sadly, if the account holder passes away, the account closes. The nominee or legal heir can only claim the amount but cannot continue deposits. Here’s the icing on the cake: All interest earned from PPF is completely tax-free under the Income Tax Act, 1961, as long as your account is at least five years old. Your deposits also qualify for a deduction under Section 80C, making PPF a triple treat – it’s an Exempt-Exempt-Exempt (EEE) investment! And finally, the government reviews and announces the PPF interest rate every three months. No surprise this time – the rate stays at a delicious 7.1% for this quarter, just like other Post Office small savings schemes. So sit back and watch your money grow safely with PPF!

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Tags: Ppf interest rate, Public provident fund, Small savings scheme, Finance ministry, Tax-free investment, Ppf maturity,