PPF Rules 2025: When it comes to safe investment, guaranteed returns and tax saving, only one name comes to everyone’s tongue – Public Provident Fund (PPF). This is the ‘superhero’ of small savings schemes on which the government itself gives guarantee, that is, your money is 100% safe.
PPF Rules 2025: But do you know that just depositing money is not enough to earn huge profits from this scheme? The government has recently made small and big changes in some of its rules, without knowing which you cannot take full advantage of it. Today we will decode those 5 most important rules of PPF, which will help in increasing your money rapidly.
First step: These forms have changed
If you are going to open a PPF account or want to continue it even after 15 years, then note these changes. Earlier Form-A had to be filled to open a new account, but now you have to submit Form-1. If you want to deposit money even after maturity, then now you have to apply by filling Form-4 instead of Form-H. This is a small but important change.
How much loan will you get? Understand the 2-year rule
You can also get a loan on PPF. But how much? Its rule is a bit complicated. You get the loan amount not on your current balance, but on the basis of the balance in your account exactly 2 years before the date of application. You can get a maximum of 25% of that balance as a loan. If you apply for a loan on 15 August 2025, the bank will see how much money was in your account on 15 August 2023. If there were ₹ 2 lakh on that day, you will get a maximum loan of ₹ 50,000.
Now you will have to pay less interest on the loan
This is a big relief for PPF account holders. Earlier you had to pay 2% more interest on PPF loan than the interest you were getting on the PPF account. But now this rule has been changed. Now you will have to pay only 1% more interest. If you are getting 7.1% interest on PPF, then you will have to pay only 8.1% interest on the loan. This is much cheaper than a personal loan.
After maturity: Earn interest without doing anything
If you do not need money after completing 15 years, then you have a great option. You can continue your PPF account without depositing any new money. You will continue to get interest on all the money deposited in your account according to the current interest rate of PPF. You can withdraw this money whenever you want.
Continue investing, increase wealth further
If you want to continue investing even after 15 years, then you can extend your account in blocks of 5-5 years by filling Form-4. Once you choose the option of extension, you can withdraw money only once in a financial year.
Only one transaction in a month
This is a rule that most people do not know. You can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh in a financial year. But, you can deposit money in your PPF account only once in a month. If you want, you can deposit ₹1.5 lakh at once or ₹500, but you cannot make another transaction in a month.
EEE Status: Triple benefit in tax
Why is PPF called the best tool to save tax? Because it has the status of EEE (Exempt-Exempt-Exempt). First E (Exempt): The amount invested by you up to ₹1.5 lakh is tax-free (under section 80C). Second E (Exempt): The interest received on it is completely tax-free. Third E (Exempt): The entire maturity amount received after 15 years is also tax-free.
5 big benefits of investing in PPF
There is a government guarantee. Your money is 100% safe. Better and guaranteed returns than many small savings schemes (currently 7.1%). Benefit of tax exemption. Money grows faster by earning interest on interest (magic of compounding). Facility of loan and partial withdrawal in times of need.
Don’t forget these things
Minimum investment: ₹500 per annum. Maximum investment: ₹1.5 lakh per annum (for tax exemption). Lock-in period: 15 years. Interest calculation: Annual compounding. Loan facility: Available from the third to the sixth year of opening the account.
Be smart, choose the right investment
Public Provident Fund (PPF) is still a great option for those investors who want to grow their money without any risk and also want to save tax. If you invest in PPF keeping in mind the above mentioned rules, you will not only be able to create a big fund but will also feel financially secure. It is a disciplined investment path that can help you meet your long-term financial goals. Always confirm the latest interest rates and terms with your bank or post office before investing.
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