PPF Interest Rate

The Ministry of Finance sets small savings rates every quarter. For July–September 2026 the Public Provident Fund pays 7.1% a year, yearly. The rate was the same in every quarter from October–December 2024 to July–September 2026.

Rules.

• Term: 15 financial years excluding FY of opening; extendable in blocks of 5 years
• Minimum deposit: ₹500 per financial year
• Maximum: ₹1,50,000 per financial year (incl. minor’s account)
• Deposits in multiples of ₹50, any number of instalments.
• Interest calculated monthly on lowest balance between close of 5th day and end of month.
• Interest credited at end of each financial year.
• Account discontinued if ₹500 not deposited in a financial year; revival ₹500 + ₹50 per defaulted year.
• Loan from year 3 to year 6, up to 25% of balance at end of 2nd preceding year.
• One withdrawal per financial year after 5 years, up to 50% of lower balance.
• Extension in 5-year blocks within one year of maturity; with deposits, withdrawal up to 60% of balance at block start.
• Premature closure after 5 years on specified grounds with 1% interest deduction.
• One account per person across post offices and banks.

Tax. Deposits qualify for Section 80C (now section 123 of the Income-tax Act, 2025); interest tax free. India Post states these rules under the Income-tax Act, 1961; from 1 April 2026 the Income-tax Act, 2025 applies with new section numbers.

Work out the maturity value with our PPF calculator.

Questions

What is the Public Provident Fund interest rate now?

7.1% a year for July–September 2026, as notified by the Ministry of Finance.

How is the interest paid?

Yearly.

Compare every scheme in the small savings interest rates table.