PPF: If you are also a PPF investor, then this article is for you. The government has decided to keep the interest rate on the Public Provident Fund (PPF) unchanged for the April to June quarter. This means that the interest rate for investments in this scheme remains the same. Here’s all the relevant information regarding the scheme and its interest rate.
The PPF, or Public Provident Fund Scheme, is a government initiative that offers tax-free interest on investments. The investment period for this scheme is set at 15 years, which is also the maturity duration. Currently, the PPF provides a fixed annual interest rate of 7.1 percent, which has not been altered by the government for the April to June quarter. The interest rates for the PPF are reviewed by the government every quarter.
Small Saving Scheme
The central government operates various schemes to encourage investment, one of which is the Small Savings Scheme. This initiative allows investors to commit their funds for 15 years, and importantly, the investments are insulated from stock market volatility and changes in bank interest rates.
Investors in the PPF can benefit from tax deductions under Section 80C of the Income Tax Act, 1961. The minimum annual investment required is Rs 500, while the maximum limit is Rs 1.5 lakh. It is essential for investors to make their contributions each year. If an installment is missed, the investor must continue to invest for the remaining years, incurring a penalty of Rs 50.
Recently Finance Minister Nirmala Sitharaman makes a big announcement. On Thursday, the central government announced a significant relief for Public Provident Fund (PPF) account holders nationwide. You no longer need to pay any fees to update or change the nominee on your PPF account. The government has revised the related regulations. Finance Minister Nirmala Sitharaman shared on social media platform X that she learned many financial institutions were charging fees for nominee updates, but those fees have now been eliminated due to the new rules. This means investors can change or update their nominees in PPF accounts without incurring any charges.
In her post, the Finance Minister mentioned that a gazette notification was issued on April 2, 2025, amending the Government Savings Promotion General Rules. This change has abolished the previous fee of Rs 50 for updating or changing nominees.
The Finance Minister provided an important update regarding PPF accounts, stating, “I was recently informed that financial institutions were charging fees for updating or modifying nominee details in PPF accounts. Necessary changes have now been made to the Government Savings Promotion General Rules 2018 through Gazette Notification 02/4/25 to eliminate any fees for nominee updates in PPF accounts.”