PPF (Public Provident Fund) Interest Rate
Rates last updated by the scheme on . Visit scheme site
Rates last updated by the scheme on .
| TENURE | General | Senior |
|---|---|---|
15 years | 7.10% | 7.10% |
Scheme Overview
Introduced in 1968, the PPF is the grand old workhorse of Indian household savings — a scheme that has survived every economic cycle without a single default. Its enduring appeal is its EEE (Exempt-Exempt-Exempt) status: the deposit, the interest, and the final maturity amount are all shielded from tax. It rewards patience over speed.
- Interest rate: 7.10% p.a., compounded annually.
- Minimum / Maximum deposit: ₹500 to ₹1.5 lakh per financial year, in multiples of ₹50. Deposits can be made in a lump sum or in instalments.
- Tenure: 15 years, counted from the end of the financial year in which the account is opened. It can be extended indefinitely in 5-year blocks, with or without fresh contributions.
- Lock-in: The account is fully locked for the first two financial years — no loan, no withdrawal.
- Eligibility: Resident individuals only. A guardian may open one on behalf of a minor, but the ₹1.5 lakh cap applies to the combined total of self and minor accounts. NRIs cannot open a new PPF, though an account opened while resident can run till maturity.
- Premature access: A loan is available between the 3rd and 6th financial year. Partial withdrawal is allowed from the 7th year onward (one per year, capped at 50% of the balance at the end of the 4th preceding year or the previous year, whichever is lower). Premature closure is permitted only after 5 years on specific grounds — life-threatening illness, higher education, or change in residency status — and carries a 1% interest penalty.
- Tax benefit: Deduction under Section 80C (old tax regime) on deposits; interest and maturity proceeds are entirely tax-free. There is no TDS.
- Payout: Interest is credited on 31 March each year and calculated on the lowest balance between the 5th and the last day of the month — so deposit before the 5th to earn interest for that month.
Illustration: depositing the full ₹1.5 lakh every year at 7.10% grows to roughly ₹40.7 lakh in 15 years, of which about ₹18 lakh is tax-free interest.
Government Schemes — At a Glance
| Scheme | Rate (p.a.) | Tenure | Max Deposit | Eligibility | Early Closure | Tax Benefit | Payout |
|---|---|---|---|---|---|---|---|
| PPF | 7.1% | 15 yrs | ₹1.5L / year | Residents | Conditional | Yes | At maturity |
| SSY | 8.2% | 21 yrs | ₹1.5L / year | Girl child | Conditional | Yes | At maturity |
| SCSS | 8.2% | 5 + 3 yrs | ₹30 lakh | Age 60+ | Yes | Yes | Quarterly |
| NSC | 7.7% | 5 yrs | No limit | Residents | No | Yes | At maturity |
| PO FD | 6.9–7.5% | 1–5 yrs | No limit | Residents | Yes | Yes | Annual |
| PO RD | 6.7% | 5 yrs | No limit | Residents | Yes | No | At maturity |
| POMIS | 7.4% | 5 yrs | ₹9L / ₹15L joint | Residents | Yes | No | Monthly |
| KVP | 7.5% | 115 months | No limit | Resident | Yes | No | At maturity |
Interest rates are for the July–Sept 2026 quarter and are revised quarterly by the Ministry of Finance. This is for educational purposes and is not investment or tax advice — verify current figures on India Post or NSI before investing.
Frequently Asked Questions
The PPF interest rate is 7.1% per annum for the July–September 2026 quarter, compounded annually. The rate is reviewed every quarter by the Ministry of Finance, so it can change. Interest is calculated on the lowest balance between the 5th and the month-end. Check the live rate on vikalp.io.
You can deposit between ₹500 and ₹1.5 lakh in a PPF account per financial year, in multiples of ₹50. The ₹1.5 lakh ceiling is combined across your own account and any account you run for a minor. Deposits can be made as a lump sum or in instalments.
PPF has a 15-year tenure, counted from the end of the financial year in which you open the account, and it is fully locked for the first two years. After maturity you can extend it indefinitely in blocks of 5 years, with or without fresh deposits.
Partial withdrawal is allowed from the 7th year, once per year and subject to a cap. A loan is available in years 3 to 6. Full premature closure is permitted only after 5 years for serious illness, higher education, or a change in residency, with a 1% interest reduction.
Any resident individual can open one PPF account, and a guardian may open one for a minor. NRIs cannot open a new PPF account, though an account opened while resident can continue until maturity. HUFs are not eligible, and only one account is allowed per person.
No, PPF enjoys full EEE (Exempt-Exempt-Exempt) status. The deposit qualifies for a Section 80C deduction under the old tax regime, and both the annual interest and the maturity amount are fully tax-free. There is no TDS. The new tax regime does not allow the 80C deduction.
PPF interest is credited once a year on 31 March and compounds annually. It is calculated on the lowest balance in your account between the 5th and the last day of each month, so depositing before the 5th earns you interest for that month.
Depositing the full ₹1.5 lakh every year at 7.1% grows to roughly ₹40.7 lakh after 15 years, of which about ₹18 lakh is tax-free interest. The actual maturity depends on the quarterly rate, which can change. Use the PPF calculator on vikalp.io to model your own figures.