PPF interest rate for October–December 2026
The Public Provident Fund pays 7.1% a year for the quarter from 1 October to 31 December 2026; the Finance Ministry kept small savings rates unchanged on 30 September 2026. The government reviews the rate every quarter, so it can change for future years. The calculator uses 7.1% by default – change it to test other scenarios.
How PPF returns are calculated
PPF interest is calculated on the lowest balance between the 5th and the last day of each month and credited once a year on 31 March, where it compounds. That is why the classic advice is to deposit before 5 April: money in the account from the start of the financial year earns interest for all twelve months. This calculator assumes one deposit each year made by 5 April, which gives the highest possible maturity for a given amount. Depositing ₹1.5 lakh every year for 15 years at 7.1% gives about ₹40.68 lakh, of which ₹22.5 lakh is your own money and about ₹18.18 lakh is tax-free interest.
Key PPF rules
- Deposit limits: minimum ₹500 and maximum ₹1,50,000 per financial year. Amounts above the limit earn no interest and get no tax benefit.
- Tenure: 15 full financial years, after which you can extend in blocks of 5 years, with or without fresh deposits.
- Tax: PPF has EEE status – deposits qualify for section 80C in the old regime, and interest and maturity are tax-free.
- Liquidity: partial withdrawals are allowed from the seventh financial year, and loans against the balance from the third to the sixth year.
- Safety: it is a government-backed scheme offered by post offices and authorised banks.
Is PPF worth it in the new tax regime?
In the new regime you do not get the 80C deduction, but PPF interest is still tax-free. For a conservative investor in the 20% or 30% bracket, 7.1% tax-free is comparable to a taxable FD yielding roughly 9–10%. It is a strong choice for the safe, long-term part of a portfolio – such as a child's education or retirement – while equity SIPs can handle growth.
Estimates only: the actual rate can change every quarter and the timing of your deposits affects interest. For information only, not financial advice. A free tool from Zodiac Sign For Today.
Frequently asked questions
What is the PPF interest rate now?
7.1% a year for 1 October to 31 December 2026, unchanged from the previous quarter.
What will ₹1.5 lakh a year in PPF become after 15 years?
About ₹40.68 lakh at 7.1%, if deposited before 5 April every year.
Why deposit before 5 April?
Interest for a month uses the lowest balance between the 5th and month-end, so money added by 5 April earns interest for the whole year.
Is PPF interest taxable?
No. PPF interest and the maturity amount are tax-free.
Can I extend PPF after 15 years?
Yes, in blocks of five years, with or without new deposits.