PPF Interest Rate 2026: 7.1%, Maturity Table and Rules

The Public Provident Fund (PPF) pays 7.1% a year for October–December 2026, the same rate it has paid in every quarter since 1 April 2020. If you put in the maximum ₹1,50,000 every year by 5 April, you will have ₹40,68,209 after 15 years: ₹22,50,000 of your own money and ₹18,18,209 of interest, all of it tax-free.

You can check any amount in our PPF calculator, which shows the balance year by year. This guide explains how the rate is set, how the post office or bank actually works out your interest (and why the 5th of the month matters), a full maturity table, and the extension, loan and withdrawal rules with real numbers.

PPF interest rate for October–December 2026

The rate is 7.1% a year, compounded yearly. The Ministry of Finance (Department of Economic Affairs) reviews small savings rates every quarter and announces them just before the quarter starts. Its order of 30 September 2026 kept every rate unchanged, so PPF stays at 7.1% for 1 October to 31 December 2026. The rate for January–March 2027 will be announced around the end of December.

The rate is not picked at random. Since 2011, following the Shyamala Gopinath committee, small savings rates have been linked to the yield on government bonds (G-secs) of similar maturity, with PPF set about 0.25 percentage points above that benchmark. Since April 2016 the reset has been quarterly. The formula is a guide, though, not a binding rule, and the government does not always move the rate when bond yields move.

One detail many people miss: a new PPF rate applies to your whole balance, not just to new deposits. Unlike an FD or NSC, you do not lock in the rate on the day you open the account. That is why any 15-year projection, including ours, is an estimate.

PPF interest rate history

PPF has been around since 1968. The rate has followed India's interest rates down over the past 25 years:

The lesson for planning: assume the rate can move by half a point either way over 15 years. In the calculator, ₹1,50,000 a year for 15 years gives ₹38,63,102 at 6.5% and ₹42,11,586 at 7.5%, against ₹40,68,209 at 7.1%. The spread is about ₹3.5 lakh, so do not plan to the last rupee.

How PPF interest is calculated: the 5th-of-the-month rule

Under the PPF Scheme, 2019, interest is worked out for each calendar month on the lowest balance between the close of the 5th day and the end of the month, at one-twelfth of the yearly rate. The twelve monthly amounts are added up and credited once, on 31 March. So money that arrives on or before the 5th earns interest for that month; money that arrives on the 6th earns nothing until the next month.

Worked example: ₹1,50,000 on 4 April vs 6 April

Say your PPF balance on 1 April 2026 is ₹5,00,000 and you deposit ₹1,50,000 for the new year.

1. Deposit on 4 April. The balance from the 5th to 30 April never drops below ₹6,50,000. April interest = ₹6,50,000 × 7.1% ÷ 12 = ₹3,845.83.
2. Deposit on 6 April. On the 5th the balance was still ₹5,00,000, so that is the lowest balance for April. April interest = ₹5,00,000 × 7.1% ÷ 12 = ₹2,958.33.
3. Difference. ₹3,845.83 − ₹2,958.33 = ₹887.50, which is exactly one month's interest on the new deposit: ₹1,50,000 × 7.1% ÷ 12.
4. Check over the full year. On-time: ₹6,50,000 × 7.1% = ₹46,150. Late: ₹5,00,000 × 7.1% + ₹1,50,000 × 7.1% × 11 ÷ 12 = ₹35,500 + ₹9,762.50 = ₹45,262.50. The gap is again ₹887.50.

One late deposit costs little. But the lost interest also misses out on compounding, and the habit adds up. If you deposit ₹1,50,000 on 6 April every year for 15 years, you end with about ₹40,45,735 instead of ₹40,68,209, roughly ₹22,475 less for being one day late each year. (Check: ₹887.50 lost each year, growing at 7.1%, is ₹887.50 × (1.071 to the power 15, minus 1) ÷ 0.071 ≈ ₹22,474.)

If you pay monthly instead, the same rule applies each month: make sure the money reaches the account by the 5th. Allow a day or two for transfers.

PPF maturity table: 15, 20 and 25 years

These figures come straight from the PPF calculator. They assume each year's deposit is made by 5 April and the rate stays at 7.1% throughout. The 20- and 25-year columns assume you extend the account in 5-year blocks and keep depositing.

Three things stand out:

• The later years do the heavy lifting. At ₹1,50,000 a year, interest in year 1 is ₹10,650. By year 11 it is ₹1,68,989, more than the year's deposit. Year 15 alone earns ₹2,69,695.
• Extending pays. Ten more years of ₹1,50,000 (₹15 lakh extra) takes the balance from ₹40.7 lakh to just over ₹1.03 crore. Total deposits over 25 years are ₹37,50,000; the other ₹65,58,015 is interest.
• Small amounts still grow. ₹1,000 a month for 15 years (₹1,80,000 in all) becomes ₹3,25,457.

After 15 years: close or extend

A PPF account matures after 15 full financial years counted from the end of the year you opened it. An account opened at any time in 2026-27 matures after 31 March 2042. Strictly, that means an account opened early in a financial year gets a 16th year of deposits and interest; the calculator, like most, counts 15, so in that case it slightly understates the final figure. At maturity you have three choices.

• Close it and take the full balance, tax-free.
• Extend with deposits for 5 years by submitting Form 4 within one year of maturity. You keep depositing (₹500 to ₹1,50,000 a year) and can withdraw up to 60% of the balance at the start of the block, once a year. On ₹40,68,209, that cap is ₹24,40,925 across the 5 years. If you keep paying in without submitting Form 4, those deposits earn no interest.
• Extend without deposits. This is what happens if you do nothing. The balance keeps earning interest and you can make one withdrawal of any amount each year. ₹40,68,209 left alone for 5 more years at 7.1% becomes about ₹57,32,586 (₹40,68,209 × 1.071 to the power 5). Once you have continued without deposits for over a year, you cannot switch to depositing again.

Extensions run in 5-year blocks and can be repeated, which is how the 20- and 25-year columns above work.

Loans and partial withdrawals, with numbers

PPF is locked, but not completely. Take an account opened in 2026-27 (year 1) with ₹1,50,000 deposited by 5 April every year. The year-end balances from the calculator are: year 1 ₹1,60,650; year 3 ₹5,16,978; year 4 ₹7,14,334; year 6 ₹11,52,076; year 9 ₹19,32,282.

Loan rules. Loans are available from the 3rd to the 6th financial year, up to 25% of the balance at the end of the second year before the year you apply. You pay interest of 1% a year, and the borrowed amount earns no PPF interest while it is out, so the real cost is about one point above the PPF rate. Repay within 36 months; after that, interest is charged at 6% a year. You cannot take a new loan until the old one is cleared.

Withdrawal rules. From the 7th financial year you can withdraw once a year, up to 50% of the lower of (a) the balance at the end of the 4th year before the withdrawal year and (b) the balance at the end of the previous year. In year 7 that is 50% of ₹5,16,978 = ₹2,58,489. Withdrawals are tax-free and need not be repaid.

Premature closure is allowed after 5 years only for set reasons: serious illness of you or your family, higher education, or a change in residency status. Interest for the whole period is then cut by 1 percentage point.

Missed a year? If you do not deposit the ₹500 minimum in a year, the account becomes "discontinued". You can revive it before maturity by paying ₹500 for each missed year plus a ₹50 fee. Loans and withdrawals are not allowed while it is discontinued.

Tax: why PPF is called EEE

• Exempt on deposit: up to ₹1,50,000 a year is deductible under the familiar Section 80C (Section 123 and Schedule XV of the Income-tax Act, 2025), but only in the old tax regime. The ₹1.5 lakh cap is shared with EPF, ELSS, life insurance and the rest.
• Exempt on interest: yearly interest is tax-free under both regimes.
• Exempt on maturity: the full maturity amount is tax-free.

Even in the default new regime, where you get no deduction, tax-free interest matters. For someone in the 30% slab (31.2% with cess), a taxable deposit would need to pay about 10.3% (7.1 ÷ 0.688) to match PPF after tax. To see which regime suits you, read old vs new tax regime: the break-even point.

Who PPF suits, and who it doesn't

It suits you if you want a guaranteed, government-backed, tax-free part of your savings that you will not touch for 15 years; you are self-employed with no EPF; you use the old regime and need 80C room; or you want a steady base for a goal like retirement or a child's higher education.

It may not suit you if you need the money within 5–7 years (it is locked, and early access is limited); you already have a large EPF balance earning 8.25% (see our EPF calculator), so more fixed income adds little; or your goal is 15+ years away and you can live with ups and downs, in which case an equity SIP has a chance of beating 7.1%, with no guarantee. Our RD vs FD vs SIP comparison shows that trade-off. Also remember that 7.1% tax-free still has to beat inflation; what inflation does to your savings explains why that matters.

If you are saving for a daughter under 10, look at Sukanya Samriddhi Yojana too: it currently pays 8.2%.

This article is general information based on the rules as of October 2026, not tax or investment advice.

Frequently asked questions

What is the PPF interest rate for 2026?

7.1% a year for every quarter of 2026, including October–December. It has not changed since 1 April 2020. The next review, for January–March 2027, is due around the end of December 2026.

Is the PPF calculation different at the post office and at a bank?

No. PPF is a government scheme with the same rules, rate and interest method whether your account is at a post office or an authorised bank. The PPF calculator works for both.

Can I have two PPF accounts?

No. One person can have only one PPF account, and joint accounts are not allowed. You can open one account for each minor child as guardian, but your deposits in your own and your child's account together count towards the same ₹1,50,000 yearly limit.

Is it better to deposit monthly or once a year?

A single deposit by 5 April earns the most, because the whole amount earns interest for all 12 months. Monthly deposits by the 5th of each month earn a little less, but they are easier on cash flow. Avoid paying after the 5th.

Is PPF interest taxable in the new tax regime?

No. PPF interest and the maturity amount are tax-free in both regimes. Only the deduction for deposits is limited to the old regime.

Can I use the 20-year figure if I stop depositing at 15 years?

No. The 20- and 25-year columns assume you extend with deposits. If you stop depositing, the balance still earns interest: ₹40,68,209 grows to about ₹57,32,586 after 5 more years at 7.1%.

Sources: Public Provident Fund Scheme, 2019 (Ministry of Finance); Department of Economic Affairs office memorandum on small savings interest rates, 30 September 2026; National Savings Institute PPF rate history; Income-tax Act, 2025.