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3w ago

India Retains PPF Rate at 7.1% for July–September Quarter

The June 30 decision maintains formula-linked yields despite falling bond rates earlier in the year.

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Overview

  • On June 30 the Ministry of Finance confirmed the PPF interest rate will stay at 7.1% per annum for the second quarter of FY 2025–26.
  • Interest rates for other small savings schemes such as NSC and SCSS will also remain unchanged from the previous quarter.
  • Quarterly rates are set under Shyamala Gopinath Committee guidelines that link yields to comparable government securities plus a fixed margin.
  • PPF contributions, accrued interest and maturity proceeds qualify for triple tax exemption under Section 80C of the Income Tax Act.
  • Account holders must deposit between Rs 500 and Rs 1.5 lakh annually with partial withdrawals allowed from the seventh year and a 15-year maturity term.