The Ministry of Finance informs the general public Provident Fund (PPF) rate of interest on a quarterly basis. For the October-December 2025 quarter, the federal government has actually kept the PPF rate of interest the same. PPF is a little cost savings plan, for which, the account can be opened in a post workplace or a bank. The rate of interest in both stays the very same.
Most current PPF rates of interest
The PPF account will continue to make a 7.1% rate of interest. The interest is computed for each calendar month on the most affordable balance in the account in between the close of the 5th day and completion of the month, based on the India Post site. It is credited to the account at the end of each fiscal year. In cases where the account is moved from a bank to a post workplace or vice versa, interest is credited at the end of the fiscal year in which the account stays active. In addition, the interest made on PPF is completely tax-free under the Income Tax Act, 1961. In this case, the account must be at least 5 years old.
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Maturity of PPF account
A Public Provident Fund (PPF) account grows after 15 fiscal years, omitting the year in which the account was opened. Upon maturity, the depositor has choices to withdraw the maturity quantity, continue the account without more deposits, and extend the account with deposits. Keep in mind that a stopped PPF account can not be extended.
Payment on death of PPF account holder
In case of the death of an account holder, the account will be closed, and the candidate or the legal beneficiary(s) will not be permitted to continue deposits in the account. At the time of the account closure due to death, the PPF interest rate will be paid till completion of the preceding month in which the account is closed.
Minimum and optimal PPF financial investment
The minimum deposit to buy PPF is Rs 500 in a fiscal year (FY) and the optimum deposit is Rs. 1.50 lakh in a FY. The optimum limitation of Rs 1.50 lakh will be inclusive of the deposits made in his/her own account and in the account opened on behalf of a small.
PPF tax
Deposits receive reduction under Section 80C of Income Tax Act, 1961. The interest created is tax-free, and the last maturity quantity is likewise tax-free since it is an Exempt-Exempt-Exempt (EEE) financial investment.
Discontinuation of a PPF account
The PPF account will be terminated if a minimum deposit of Rs 500 is not made within any provided. Accounts that have actually been ceased are not qualified for loan or withdrawal centers.
Before the account develops, the depositor can bring back a terminated account by paying a minimum membership of Rs 500 plus a default cost of Rs 50 for each year in which the account is not preserved. The overall deposit in a year will be inclusive of deposits made in regard of years of default of previous fiscal years.
How frequently does the federal government evaluation the PPF rate of interest?
The Ministry of Finance evaluations and alerts the general public Provident Fund (PPF) rate of interest every quarter. For the October– December 2025 quarter, the federal government has actually kept the rates the same for all Post Office little cost savings plans.
