The Public Provident Fund (PPF) is still, without a doubt, one of the most reliable long-term saving schemes in India. As the Government of India supports it, it guarantees investors a return, along with tax benefits and safety of funds. For the period of October to December 2025, the PPF interest rate has been set at 7.1% per annum by the Ministry of Finance, thus it is keeping it the same as during previous periods.
What Is PPF and Its Importance
PPF is a 15-year savings scheme whose purpose is to provide an individual with a retirement corpus. It is available to salaried employees, self-employed persons, and even minors. The scheme permits deposits of up to ₹1.5 lakh annually with a minimum of ₹500, the interest being compounded each year and credited to the account on March 31.
The interest which is accrued is subject to no tax, and the amounts which are deposited qualify for deductions under Section 80C of the Income Tax Act, thus making it a very popular option for both tax saving and wealth building.
Latest PPF Features for FY 2025–26
| Feature | Details |
|---|---|
| Interest Rate | 7.1% per annum |
| Minimum Investment | ₹500 per year |
| Maximum Investment | ₹1.5 lakh per year |
| Tenure | 15 years (extendable in blocks of 5) |
| Tax Benefits | Under Section 80C (up to ₹1.5 lakh) |
| Interest Credit Date | March 31 each financial year |
| Account Access | Available at banks and post offices |
The government reassesses PPF rates every quarter; however, the existing rate has been consistent throughout the fiscal year 2025-26 up to this point. This stability can be an assurance for the investors who opt for fixed returns over the risk of market fluctuations.
Final Thoughts
PPF continues to be the safest and most efficient method for long-term savings in the year 2025. With interest rate of 7.1% in place which also is tax-free, and the government background, it is the conservative type of investors and those who are in the process of retirement planning that will find it the most suitable. Whether you are someone who has just started to manage his/her finances or someone who is looking to spread the risk of saving, PPF can be a trustworthy start.
Also Read/ New Income Tax Rules 2025: Key Updates Affecting SBI, HDFC, and ICICI Customers