Check PPF Returns: Interest Rates for April-June 2025, Calculate PPF Maturity With SBI

The Public Provident Fund (PPF) is a government-backed, long-term savings scheme in India, designed to encourage small savings while offering tax benefits. It is one of the highly secure investment options, making it popular among risk-averse investors.

On Friday, the union government decided to keep the interest rates unchanged for various small savings schemes, including the PPF for the fifth consecutive quarter starting April 1, 2025. This means that interest rates for this saving plan will remain unchanged from the previous quarter. The PPF interest rate will be 7.1% from April 1 to June 30, 2025. The decision offers investors with stability who rely on government-backed schemes for guaranteed returns.

The notification from the Ministry of Finance said, "Rates of interest on various Small Savings Schemes for the first quarter of FY 2025-26 starting from 1st April, 2025 and ending on 30th June, 2025 shall remain unchanged from those notified for the fourth quarter (1st January, 2025 to 31st March, 2025) of FY 2024-25."

How To Calculate Your PPF Maturity Amount?

According to the PPF Calculator published on the official website of the State Bank of India (SBI), if you deposit Rs 1,50,000 monthly for 15 years, you will receive an interest of Rs 18,18,209. The entire maturity amount at the end of the 15-year period will be Rs 40,68,209. This covers your total investment of Rs 22,50,000 with the interest on it(Rs 1,50,000 every year for 15 years).

Key features of PPF:

The Public Provident Fund comes with several key features that make it an attractive investment option:

• Tenure: The PPF has a fixed 15-year tenure that can be extended in 5-year increments, providing flexibility for long-term savings.
• Minimum Deposit: You need to put in at least Rs 500 each year to keep the account active.
• Maximum Amount: The maximum amount you can deposit annually is Rs 1.5 lakh, which allows for significant savings.
• Tax Benefits: Contributions to the PPF are tax deductible under Section 80C of the Income Tax Act, making it a tax-effective investment.
• Loan and Withdrawal Facility: After a few years, you can take out loans and withdrawals from your PPF, providing liquidity in times of financial emergency. Access to these facilities, however, is subject to certain conditions.

What is Eligibility Criteria For PPF?

Individuals with Indian citizenship are eligible to join the PPF. Any Indian resident can register a PPF account, which offers a safe option to invest for the future. However, each individual is only allowed to have one PPF account. The exception to this rule is for minor accounts, in which a guardian may open a PPF account on behalf of the minor.

Parents or legal guardians can register a PPF account on behalf of a minor child, ensuring that the child benefits from this safe and tax-efficient savings plan. However, it is vital to note that the guardian's own PPF account and the minor's account have a combined deposit limit of Rs 1.5 lakh per year. This means that the combined annual deposit in both accounts cannot surpass this amount.

Advantages of PPF:

One of the primary advantages of PPF is the triple tax exemption (EEE status), which allows for tax deductions under Section 80C on deposits to the PPF account, tax-free interest on the balance, and tax-free maturity profits. The scheme has a 15-year lock-in period and provides stable and guaranteed returns from the government which makes it an excellent long-term investment plan.

This option makes PPF an attractive alternative for those seeking to invest in a government-backed, tax-efficient savings plan.

Every quarter, the government announces interest rates for small savings plans.