Ministry of Finance · Q2 FY2026-27 (July–September 2026)
PPF Interest Rate 2026
Current PPF rate is 7.1% p.a. — unchanged since April 2020. Fully tax-free under EEE status. Updated August 2026.
PPF Account — Key Features 2026
PPF Maturity Calculator — 15-Year Returns at 7.1%
Assumes ₹1,500 deposited on 1st April every year. Annual compounding at 7.1%.
| Monthly SIP Equiv. | Annual Deposit | Total Invested | Maturity Amount | Tax-Free Interest |
|---|---|---|---|---|
| ₹500/mo | ₹6,000 | ₹90,000 | ₹1,62,728 | ₹72,728 |
| ₹1,500/mo | ₹18,000 | ₹2,70,000 | ₹4,88,185 | ₹2,18,185 |
| ₹5,000/mo | ₹60,000 | ₹9,00,000 | ₹16,27,284 | ₹7,27,284 |
| ₹10,000/mo | ₹1,20,000 | ₹18,00,000 | ₹32,54,567 | ₹14,54,567 |
| ₹12,500/mo | ₹1,50,000 | ₹22,50,000 | ₹40,68,209 | ₹18,18,209 |
| ₹12,500/mo (max) | ₹1,50,000 | ₹22,50,000 | ₹40,68,209 | ₹18,18,209 |
Assumes deposit on 1st April each year; actual maturity may vary depending on deposit date. Deposit by 5th of April for full-month interest.
PPF Interest Rate History (2016–2026)
| Period | Rate (% p.a.) |
|---|---|
| April 2020 – presentCurrent | 7.10% |
| Jan 2020 – Mar 2020 | 7.90% |
| Oct 2019 – Dec 2019 | 7.90% |
| Jul 2019 – Sep 2019 | 7.90% |
| Apr 2019 – Jun 2019 | 8.00% |
| Jan 2019 – Mar 2019 | 8.00% |
| Oct 2018 – Dec 2018 | 8.00% |
| Jul 2018 – Sep 2018 | 7.60% |
| Apr 2018 – Jun 2018 | 7.60% |
| Jan 2018 – Mar 2018 | 7.60% |
| Oct 2017 – Dec 2017 | 7.80% |
| Jul 2017 – Sep 2017 | 7.80% |
| Apr 2017 – Jun 2017 | 7.90% |
| Jan 2017 – Mar 2017 | 8.00% |
| Oct 2016 – Dec 2016 | 8.00% |
| Jul 2016 – Sep 2016 | 8.10% |
| Apr 2016 – Jun 2016 | 8.10% |
PPF vs FD vs NPS — Which is Better?
| Feature | PPF | Bank FD | NPS |
|---|---|---|---|
| Current Return | 7.10% (guaranteed) | 6.25–7.00% | 10–12% (market-linked) |
| Risk | Zero (sovereign) | Very low (DICGC) | Market risk |
| Tax on Investment | Deductible (80C) | Deductible (80C) | Deductible (80C + 80CCD) |
| Tax on Interest | Fully exempt | Taxable (TDS) | Partially exempt |
| Tax on Maturity | Fully exempt | Taxable | 40% must buy annuity (taxable) |
| Lock-in | 15 years | Flexible | Till age 60 |
| Liquidity | Partial from yr 7 | Premature with penalty | Very low |
| Best for | Conservative savers | Short-term goals | Retirement + equity exposure |
Important PPF Rules You Must Know
Deposit by 5th for Full Interest
PPF interest is calculated on the minimum balance between 5th and last day of each month. If you deposit after the 5th, you lose one month's interest on that amount. Always deposit by April 5 for the maximum annual benefit.
Minimum ₹500/year or Account Becomes Inactive
Failing to deposit at least ₹500 in any financial year makes the account inactive (discontinued). To revive it, you must pay a penalty of ₹50 per missed year plus the minimum deposit of ₹500 per year.
Extension After 15 Years
You can extend your PPF account in blocks of 5 years indefinitely. Two options: (1) with contribution — keep depositing up to ₹1.5L/year and earn 7.1%; (2) without contribution — let the corpus grow at 7.1% tax-free. Apply for extension within 1 year of maturity.
Only One Account Per Person
You can only hold one PPF account in your own name. A second account in the same name is irregular and earns no interest on the excess. However, you can open one account in a minor child's name (and one in your name).
NRI Status Freezes the Account
If you become an NRI after opening a PPF account, the account continues until maturity but no further contributions are allowed and no extensions can be taken. The account earns interest until maturity.
No Attachment by Courts
PPF balance cannot be attached by a court order to recover debts, except in Income Tax dues. This makes PPF a safe haven even during financial difficulties.