PPF Interest Rate Unchanged: How Rs 12,500/Month Can Grow Into Rs 40.6 Lakh In 15 Years

Last Updated:July 01, 2025, 15:03 IST

PPF Calculator: With the interest rate is stagnant at 7.1 per cent, investors wonder how much they would be able to save and build the corpus after a certain time in PPF.

PPF Interest Calculator: The Indian government has kept the interest rates of several small savings schemes unchanged for the upcoming second quarter of the financial year 2025-26. The schemes that come under small savings schemes umbrella are: Public Provident Fund (PPF), Sukanya Samriddhi scheme, Three-year term deposit scheme, Post office savings deposit scheme, Kisna Vikas Patra, National Savings Certificate (NSC), and Monthly Income scheme.

“The rates of interest on various small savings schemes for the second quarter of FY 2025-26 starting from 1st July, 2025 and ending on 30th September, 2025 shall remain unchanged from those notified for the first quarter (1st April, 2025 to 30th June, 2025) of FY 2025-26,” the finance ministry said in a notification on Monday.

Public Provident Fund (PPF) Interest Rate 2025-26

Public Provident Fund (PPF) will offer interest rate at 7.1 per cent for the quarter between July to September 2025.

Public Provident Fund (PPF) is a long-term savings scheme offered by the Government of India. It is mainly designed to encourage small savings and investment while offering tax benefits and safety of capital.

PPF Return Calculator

With the interest rate is stagnant at 7.1 per cent, investors wonder how much they would be able to save and build the corpus after a certain time in PPF.

PPF allows you to save nominal Rs 12,500 every month, translating to an yearly investment of Rs 1.5 lakh (the maximum limit). You can build a good corpus of Rs 40.6 lakh in the next 15 years. Moreover, PPF comes under EEE (Exempt-Exempt-Exempt), meaning premium, interest and maturity are completely tax-free.

So, basically, you corpus can reach over Rs 40.6 lakh in 15 years at an interest rate of 7.1% (compounded yearly) with an annual investment of Rs 1.5 lakh.

The figures provided above are approximate calculations based on the current PPF interest rate of 7.1% compounded annually. Actual returns may vary depending on future interest rate revisions, timing of deposits, and individual investment behavior.

Still, it marks the shot by helping you build a retirement corpus, with a safety of money, tax benefits and security of retirement.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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