PPF Interest Rate 2025-26 — 7.1% Per Annum

Updated: 3 June 2026 | Income-tax Act 2025 | Section 10(11) & 80C | EEE Status

The current PPF interest rate is 7.1% per annum, compounded annually — unchanged since April 2020. Set by the Government of India quarterly, PPF interest is completely tax-free under Section 10(11). Deposits qualify for Section 80C deduction up to ₹1.5 lakh/year. Tenure is 15 years (extendable in 5-year blocks), minimum ₹500/year, maximum ₹1.5 lakh/year.

7.1% p.a.

PPF interest rate — tax-free, compounded annually (EEE status).
Unchanged since April 2020. Reviewed quarterly. Maturity amount fully exempt under Section 10(11). 80C benefit on deposits up to ₹1.5L/year.

PPF Interest Rate History (Last 10 Years)

Period	PPF Rate (% p.a.)	Remarks
Apr 2020 – Present	7.1%	Current rate — unchanged for 5+ years
Jan 2019 – Mar 2020	8.0%	Rate cut from 8% in April 2020
Oct 2018 – Dec 2018	8.0%	Stable at 8%
Jul 2017 – Sep 2018	7.6%	Reduced from 7.9%
Apr 2017 – Jun 2017	7.9%	Reduced from 8.0%
Oct 2016 – Mar 2017	8.0%	Reduced from 8.1%
Apr 2016 – Sep 2016	8.1%	Reduced from 8.7%
Apr 2015 – Mar 2016	8.7%	High rate era
Apr 2014 – Mar 2015	8.7%	Stable high rate
Apr 2013 – Mar 2014	8.7%	Stable high rate

PPF vs FD vs NPS vs ELSS — Comparison

Parameter	PPF	Fixed Deposit (5yr)	NPS (Tier I)	ELSS
Current Return	7.1% (fixed)	~6.5–7.5%	Market-linked (~10–12% historical)	Market-linked (~12–15% historical)
Tax on Interest / Returns	Fully exempt (EEE)	Taxable as per slab	Partially taxable at withdrawal	LTCG 12.5% above ₹1.25L gains
80C Benefit	Yes — up to ₹1.5L	Yes (5-yr tax saver FD)	Yes (additional ₹50K under 80CCD(1B))	Yes — up to ₹1.5L
Lock-in	15 years	5 years	Till age 60	3 years
Risk	Zero (government backed)	Zero (DICGC insured up to ₹5L)	Low–Medium	High (equity)
Liquidity	Partial from year 7	Penalty on early break	Very low till retirement	After 3-year lock-in
Best For	Safe, tax-free long-term savings	Guaranteed returns with 80C	Retirement corpus	Wealth creation + 80C

PPF Account — Key Rules

Parameter	Details
Minimum deposit	₹500 per financial year (to keep account active)
Maximum deposit	₹1,50,000 per financial year
Tenure	15 years from the end of the financial year of account opening
Extension	Extendable in 5-year blocks indefinitely — with or without contribution
Interest calculation	On minimum balance between 5th and last day of the month
Interest credit	Credited on 31st March each year
Accounts per person	One (joint accounts not allowed; one minor account allowed per parent)
NRI status	NRIs cannot open new PPF; existing accounts can be continued till maturity at applicable rate
Nomination	Available — nominee can claim balance on account holder's death

How to Open a PPF Account

Online (recommended): Log in to SBI net banking / YONO → "PPF Account" → Enter details → Transfer initial deposit. Also available via ICICI Bank, HDFC Bank, Axis Bank net banking.

Offline (bank branch): Visit SBI or any nationalized bank branch → Fill Form A → Submit PAN, Aadhaar, photo, address proof → Deposit minimum ₹500 to activate.

Post Office: Visit nearest post office → Submit account opening form with KYC documents → Deposit minimum ₹500. Post office PPF accounts can now be linked to India Post Payments Bank for online management.

PPF Maturity Calculation Example

Monthly deposit of ₹12,500 (₹1.5L/year) at 7.1% for 15 years:

Total Invested	Maturity Amount	Interest Earned	Tax Saved (30% slab)
₹22,50,000	≈ ₹40,68,000	≈ ₹18,18,000	₹0 (fully exempt)

Frequently Asked Questions

What is the current PPF interest rate in 2025-26?

The current PPF (Public Provident Fund) interest rate is 7.1% per annum, compounded annually. This rate has been unchanged since April 2020. The government reviews PPF interest rates every quarter (April, July, October, January), but has kept it at 7.1% for over 4 years. Interest is calculated on the minimum balance between the 5th and last day of each month. To maximize interest, deposit before the 5th of any month.

Is PPF interest taxable?

No — PPF interest is completely tax-free under Section 10(11) of the Income-tax Act. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status: deposits are eligible for Section 80C deduction (up to ₹1.5 lakh), interest earned is tax-free, and the maturity amount is also fully exempt from tax. This EEE status makes PPF one of the most tax-efficient long-term savings instruments in India, especially compared to fixed deposits (taxable interest) and NPS (partial taxability at maturity).

Can I withdraw from PPF before 15 years?

Partial withdrawal from PPF is allowed from the 7th financial year onwards (i.e., from FY 7 of account opening). You can withdraw up to 50% of the balance at the end of the 4th year preceding the withdrawal year or end of the preceding year, whichever is lower. Only one partial withdrawal is allowed per year. Premature full closure (before 15 years) is only allowed after 5 years in specific cases: serious illness of self/spouse/children, higher education, or change of residency to non-Indian (NRI status).

Can I take a loan against my PPF account?

Yes. Loan against PPF is available from the 3rd to the 6th financial year. You can borrow up to 25% of the balance at the end of the 2nd year preceding the loan application year. The interest on PPF loan is 1% above the PPF rate (currently 8.1%). The loan must be repaid within 36 months. A second loan is available before the 6th year if the first loan is fully repaid. After the 6th year, partial withdrawal replaces the loan facility — withdrawal is generally more beneficial as it does not need to be repaid.

Where can I open a PPF account?

PPF accounts can be opened at: (1) Any branch of State Bank of India (SBI) or its associates; (2) Nationalized banks like Bank of Baroda, PNB, Canara Bank, Union Bank, etc.; (3) ICICI Bank, Axis Bank, HDFC Bank (selected private banks); (4) Post Office (any branch). Online PPF accounts can be opened through SBI net banking, ICICI net banking, HDFC Bank, and Axis Bank. The minimum deposit to open is ₹500, and the account must receive at least ₹500 per year to stay active (max ₹1.5 lakh/year).

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