The Public Provident Fund (PPF) is a popular investment vehicle in India, alongside the National Savings Certificate and the Senior Citizen Savings Scheme. These small savings schemes have long been sought after as a stable means of building up financial stability, so there was considerable attention on whether Public Provident Funds would change their interest rates in Q2 2025. However, those seeking a stable PPF investment can rest easy, as the latest review, whose results were announced on June 30, has confirmed that there will be no changes to the interest rates. 

The government has declared an 8.25% interest rate on Employees' Provident Fund (EPF) for FY25.

While EPF is primarily for salaried employees, a comparable long-term, tax-efficient fixed-income option for self-employed individuals is the Public Provident Fund (PPF).
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The PPF is valued as an investment vehicle in large part thanks to its stable returns and its resilience against market volatility. The Q2 2025 review reinforces the stability of the PPF as investment vehicle thanks to its unchanging interest rate. The Public Provident Fund is an invaluable long-term investment option for gradually building wealth, due to its strong tax incentives, with PPF investments, which max out at Rs 1.5 lakhs per year, being tax exempt. In addition, the interest earned on a PPF investment is also tax free, along with the amount investors will gain upon the fund’s maturity. 

Everyone above age 18 should have an PPF (Public Provident fund) account !!
It's the most underrated financial instrument discussed on social media !!

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Due to its slow and steady growth rate, backing by the Government, and imperviousness to market volatility, a PPF is a great choice for investment plans that can persist over the long term. An individual can only open one PPF account during their lifetime. The minimum yearly deposit required to keep a PPF active is Rs 500 per year, while the maximum yearly deposit possible is Rs 1.5 lakhs per year. If an investment of at least 500 per year isn’t made, a PPF can still be reactivated provided that the investor pays a fee of Rs 500 for each missed year, along with a penalty of Rs 50 per year. A PPF reaches maturity 15 years after opening an account, with investors having the option of withdrawing the mature balance or extending the PPF in increments of five years.

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