Savings Schemes
PPF in 2026: Interest Rate, Rules, Withdrawals and Maturity
The current rate, every rule in one table, maturity values, and the deposit-date habit that earns you more.
By Team Vind · Updated · 6 min read
The Public Provident Fund (PPF) is one of India's favourite long-term savings schemes, and for good reason. It's backed by the government, the interest is tax-free, and it quietly builds a large sum over 15 years. Here's how it works in 2026: the rate, the rules, what you'll get at maturity, and the deposit-date trick that adds thousands.
PPF interest rate for October–December 2026
The government sets the PPF rate every quarter. For October–December 2026 it is 7.1% a year, compounded yearly. It has stayed at this level for several years, but it can change any quarter, so check before you plan.
The rules at a glance
| Rule | What it means |
|---|---|
| Deposit | At least ₹500 and at most ₹1.5 lakh each financial year (April–March), in one go or in parts |
| Term | 15 full financial years after the year you open it |
| Extension | In blocks of 5 years, with or without new deposits, as many times as you like |
| Partial withdrawal | From the 7th financial year, once a year, up to 50% of the balance (by a set formula) |
| Loan | From the 3rd to the 6th year, up to 25% of the balance, at 1% above the PPF rate |
| Early closure | After 5 years, only for reasons like serious illness or higher education, with a small interest cut |
| Who can open | Any resident Indian, at a post office or an authorised bank; one account per person |
You can also open an account for your child as guardian. Your deposits across your own and your child's accounts count together towards the ₹1.5 lakh limit.
How much will you get?
Assuming you deposit before 5 April every year at today's 7.1%:
| Yearly deposit | After 15 years | After 20 years | After 25 years |
|---|---|---|---|
| ₹50,000 | ₹13.56 lakh | ₹22.19 lakh | ₹34.36 lakh |
| ₹1,00,000 | ₹27.12 lakh | ₹44.39 lakh | ₹68.72 lakh |
| ₹1,50,000 | ₹40.68 lakh | ₹66.58 lakh | ₹1.03 crore |
Investing the full ₹1.5 lakh a year for 15 years means ₹22.5 lakh in, and about ₹40.68 lakh out, all tax-free. Extending by two 5-year blocks and continuing to invest takes it to about ₹1.03 crore. Over long periods, most of the growth comes from the later years of compounding.
Maturity = P × [(1 + i)ⁿ − 1] ÷ i × (1 + i) · P = yearly deposit, i = rate ÷ 100, n = years
Try it: PPF Calculator
Your PPF Maturity
- Invested₹22,50,000(55%)
- Interest₹18,18,209(45%)
Year-by-year balance
| Year | Deposited so far | Interest that year | Balance |
|---|---|---|---|
| 1 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 | ₹3,00,000 | ₹22,056 | ₹3,32,706 |
| 3 | ₹4,50,000 | ₹34,272 | ₹5,16,978 |
| 4 | ₹6,00,000 | ₹47,355 | ₹7,14,334 |
| 5 | ₹7,50,000 | ₹61,368 | ₹9,25,701 |
| 6 | ₹9,00,000 | ₹76,375 | ₹11,52,076 |
| 7 | ₹10,50,000 | ₹92,447 | ₹13,94,524 |
| 8 | ₹12,00,000 | ₹1,09,661 | ₹16,54,185 |
| 9 | ₹13,50,000 | ₹1,28,097 | ₹19,32,282 |
| 10 | ₹15,00,000 | ₹1,47,842 | ₹22,30,124 |
Deposit before the 5th
PPF interest is worked out every month on the lowest balance between the 5th and the last day of the month, then added to your account on 31 March. Money that arrives on the 6th misses that whole month's interest.
Tax benefits
- Interest and maturity are tax-free in both tax regimes.
- Deposits count under 80C (up to ₹1.5 lakh) only in the old tax regime. See whether that matters for you in our old vs new tax regime guide.
Is PPF right for you?
- Good for: safe, tax-free long-term savings, such as retirement or a child's education, and the safe part of a portfolio.
- Not ideal for: money you may need within 5–6 years, because withdrawals are restricted. Consider an FD or RD instead.
- For higher growth over 15+ years, many people pair PPF with equity SIPs. See SIP vs lumpsum.
Frequently asked questions
What is the PPF interest rate now?
7.1% a year for October–December 2026. The government reviews it every quarter.
Can I withdraw money from PPF before 15 years?
Partial withdrawals are allowed once a year from the 7th financial year, up to about half the balance. Full early closure is allowed after 5 years only for specific reasons like serious illness or higher education.
Is PPF interest taxable?
No. PPF interest and the maturity amount are tax-free in both regimes. Deposits get the 80C deduction only in the old regime.
What happens after 15 years?
You can close the account and take the money, keep it without new deposits (it keeps earning interest), or extend it in 5-year blocks with deposits. To extend with deposits, apply within a year of maturity.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Sources
- Ministry of Finance: small savings interest rates for October–December 2026
- India Post: Post Office Savings Schemes
Last reviewed: 10 October 2026