New Delhi: Public Provident Fund (PPF) will fetch an rate of interest of seven.1 % for the April-June quarter. Rates of interest on small financial savings schemes has as soon as once more been unchanged by the federal government for April-June 2025 Quarter. The rates of interest on these schemes ranging to PPF, Sukanya Samriddhi and NSC, has been stored on maintain for the fifth straight quarter starting April 1, 2025.

Why fifth April Is A Essential Date To Earn Most Curiosity From Your Public Provident Fund Account?

The rates of interest for Public Provident Fund account are calculated between the fiscal yr starting 1st April to thirty first March yearly. Curiosity on PPF is calculated each month relying on the month-to-month stability that a person has in his or her account between the fifth and the final day of each month. Therefore, should you make investments earlier than April 5 i.e simply in the beginning of a fiscal yr, you’ll reap most curiosity in your Public Provident Fund. 

Public Provident Fund: Why Is March 31 A Important Date?

Conversely, if you’re a subscriber of Public Provident Fund, March 31 deadline can also be equally important for you. The Minimal Quantity for opening of account and most stability that may be retained for PPF is the top of a monetary yr. Therefore, it’s obligatory that you just deposit the minimal stability earlier than the top of the monetary yr which is March 31.

Curiosity Charges On Small Financial savings Scheme April-June 2025 Quarter

Rates of interest of those small financial savings scheme will stay unchanged for the primary quarter of the following fiscal, starting April 1, 2025, a notification issued by the finance ministry has mentioned.

“The charges of curiosity on numerous Small Financial savings Schemes for the primary quarter of FY 2025-26 ranging from 1st April, 2025 and ending on thirtieth June, 2025 shall stay unchanged from these notified for the fourth quarter (1st January, 2025 to thirty first March, 2025) of FY 2024-25,” mentioned a finance ministry notification.

PPF Curiosity Charges Unchanged Since April 2020

The rate of interest on PPF has remained unchanged since April 2020. Nevertheless, it is very important notice that PPF stands other than different small financial savings schemes like SCSS and NSC attributable to its tax-free earnings standing upon withdrawal. Which means regardless of doubtlessly decrease returns in comparison with different schemes, the post-tax earnings from a PPF account can nonetheless be extra favorable.

One of many key points of interest of the PPF scheme lies in its tax advantages beneath part 80C of the Revenue Tax Act, making it a well-liked selection amongst traders. Even with an rate of interest of seven.1%, the efficient post-tax return from PPF might be over 10% for taxpayers in increased earnings tax brackets.