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By Ashutosh Joshi, PGDM (Finance), B.Com · Page last reviewed:
PPF pays 7.1% a year, tax-free, for 1 Oct – 31 Dec 2026 (unchanged since April 2020). For someone in the 30% slab that equals about 10.32% on a taxable FD. Deposit by the 5th of the month to earn that month’s interest.
Key Highlights
- PPF pays 7.1% a year for 1 October – 31 December 2026; the Finance Ministry kept it unchanged.
- The rate has stayed at 7.1% since 1 April 2020. Before that it moved between 7.6% and 8.0% in 2017–2020.
- The highest PPF rate was 12.0%, paid from 1986-87 until 14 January 2000.
- Interest is worked out on the lowest balance between the 5th and the end of each month, so deposit before the 5th.
The government resets the PPF rate every quarter. Unlike an FD, your PPF balance always earns the current rate, so a cut or a hike applies to your whole balance from that quarter onwards. Read our PPF guide (Hindi)
Plan your PPF at 7.1%
See what yearly deposits grow to over 15 years.
Your next questions, answered
Is 7.1% good compared with an FD after tax?
Yes for taxpayers. An FD at 7% leaves 4.82% after tax in the 30% slab and 5.54% in the 20% slab. PPF keeps the full 7.1%. To match PPF, a taxable FD would have to pay 10.32% (30% slab).
Will the PPF rate change next quarter?
The Finance Ministry resets it every quarter; the next decision covers January–March 2027 and is usually announced around the last working day of December. It has been 7.1% for 27 quarters in a row, but nothing is guaranteed.
Why deposit before the 5th?
Interest is worked on the lowest balance between the 5th and the end of each month. ₹1.5 lakh paid by 5 April earns about ₹10,650 in the first year. ₹12,500 paid by the 5th of every month earns about ₹5,769. Paying in after the 5th loses that month’s interest.
How much will I have after 15, 20 or 25 years?
At ₹1.5 lakh a year (paid at the start of each year) and 7.1%: ₹40.68 lakh after 15 years, ₹66.58 lakh after 20 and ₹103.08 lakh after 25, if the rate stays the same.
Diving Finance view: expert take by Ashutosh Joshi
- PPF works best when you extend it to 20–25 years. 15 years builds ₹40.68 lakh; another 10 years in 5-year blocks takes it to ₹103.08 lakh.
- I invest in PPF in instalments through the year as money comes in, and I always pay before the 5th. A lump sum on 1–5 April earns the most, but regular deposits by the 5th are a sensible middle path.
- Keep PPF as your tax-free debt base. Use equity SIPs (planning return 10–12%) for growth.
This is general guidance, not personal advice. Check your own goals, tax slab and risk appetite.
How it compares after tax and inflation
| Option | Pre-tax | Post-tax (30% slab) | Post-tax (20% slab) | Real return after 6% inflation (30% slab) |
|---|---|---|---|---|
| PPF | 7.1% | 7.10% | 7.10% | 1.04% |
| Bank FD (illustrative) | 7.0% | 4.82% | 5.54% | -1.12% |
| NSC | 7.7% | 5.30% | 6.10% | -0.66% |
| SCSS | 8.2% | 5.64% | 6.49% | -0.34% |
Assumptions in the comparisons: income-tax slabs of 30% and 20% plus 4% cess (31.2% and 20.8%), an illustrative bank FD at 7%, long-run inflation of 6% and equity SIP returns of 10–12%, as used by our author. These are planning assumptions, not forecasts.
Cost of delay: starting PPF 5 years late and stopping at the same date (10 years of ₹1.5 lakh instead of 15) leaves ₹22.30 lakh instead of ₹40.68 lakh, which is ₹18.38 lakh less.
Worked example
Put in ₹1.5 lakh every year before 5 April for 15 years. At 7.1% throughout, the account grows to about ₹40.68 lakh: ₹22.5 lakh deposited plus about ₹18.18 lakh interest, all tax-free.
Deposit the same ₹1.5 lakh on 6 April instead and April earns no interest on it. That costs about ₹888 (₹1,50,000 × 7.1% ÷ 12) in the first year alone. Run your own numbers
PPF interest rate history (1968 – 2026)
| Period | Rate (p.a.) | Source |
|---|---|---|
| 01.10.2026 to 31.12.2026 | 7.1% | DEA OM 30 Sep 2026 ↗ |
| 01.04.2020 to 30.09.2026 | 7.1% | NSI ↗ |
| 01.07.2019 to 31.03.2020 | 7.9% | NSI ↗ |
| 01.10.2018 to 30.06.2019* | 8.0% | NSI ↗ |
| 01.01.2018 to 30.09.2018 | 7.6% | NSI ↗ |
| 01.07.2017 to 31.12.2017 | 7.8% | NSI ↗ |
| 01.04.2017 to 30.06.2017 | 7.9% | NSI ↗ |
| 01.10.2016 to 31.03.2017 | 8.0% | NSI ↗ |
| 01.04.2016 to 30.09.2016 | 8.1% | NSI ↗ |
| 01.04.2013 to 31.03.2016 | 8.7% | NSI ↗ |
| 01.04.2012 to 31.03.2013 | 8.8% | NSI ↗ |
| 01.12.2011 to 31.03.2012 | 8.6% | NSI ↗ |
| 01.03.2003 to 30.11.2011 | 8.0% | NSI ↗ |
| 01.03.2002 to 28.02.2003 | 9.0% | NSI ↗ |
| 01.03.2001 to 28.02.2002 | 9.5% | NSI ↗ |
| 15.01.2000 to 28.02.2001 | 11.0% | NSI ↗ |
| 01.04.1999 to 14.01.2000 | 12.0% | NSI ↗ |
| 1986-87 to 1998-99 | 12.0% | NSI ↗ |
| 1985-86 | 10.0% | NSI ↗ |
| 1984-85 | 9.5% | NSI ↗ |
| 1983-84 | 9.0% | NSI ↗ |
| 1981-82 to 1982-83 | 8.5% | NSI ↗ |
| 1980-81 | 8.0% | NSI ↗ |
| 1977-78 to 1979-80 | 7.5% | NSI ↗ |
| 1975-76 to 1976-77 | 7.0% | NSI ↗ |
| 01.08.1974 to 31.03.1975 | 7.0% | NSI ↗ |
| 01.04.1974 to 31.07.1974 | 5.8% | NSI ↗ |
| 1973-74 | 5.3% | NSI ↗ |
| 1970-71 to 1972-73 | 5.0% | NSI ↗ |
| 1968-69 to 1969-70 | 4.8% | NSI ↗ |
PPF rate chart
Key PPF rules
- Deposit at least ₹500 and at most ₹1.5 lakh in a financial year, in multiples of ₹50, in one go or in instalments.
- Interest is calculated monthly on the lowest balance between the close of the 5th day and the end of the month, and credited at the end of each financial year.
- A loan of up to 25% of the balance (as at the end of the second year before the one you apply in) is allowed after the first year and before the end of the fifth year.
- Maturity is 15 years. Deposits qualify for section 123 (old 80C) in the old regime, and interest and maturity are tax-free.
Source: DivingFinance, PPF Interest Rate (Oct–Dec 2026) & History Since 1968, https://divingfinance.com/rates/ppf-interest-rate/ (data: National Savings Institute, Ministry of Finance; updated 21 Oct 2026)FAQs
What is the PPF interest rate for October–December 2026?
7.1% a year. The Finance Ministry's order of 30 September 2026 kept all small savings rates unchanged.
How long has PPF been at 7.1%?
Since 1 April 2020, according to the National Savings Institute.
What was the highest PPF rate?
12% a year, paid from 1986-87 until 14 January 2000.
Does a rate change apply to my old deposits?
Yes. The whole PPF balance earns the rate in force for each quarter.
Why should I deposit before the 5th?
Interest for a month is calculated on the lowest balance between the close of the 5th day and the month end.
Is PPF interest taxable?
No. Interest and the maturity amount are tax-free.
Is 7.1% good compared with an FD after tax?
Yes for taxpayers. An FD at 7% leaves 4.82% after tax in the 30% slab and 5.54% in the 20% slab. PPF keeps the full 7.1%. To match PPF, a taxable FD would have to pay 10.32% (30% slab).
Will the PPF rate change next quarter?
The Finance Ministry resets it every quarter; the next decision covers January–March 2027 and is usually announced around the last working day of December. It has been 7.1% for 27 quarters in a row, but nothing is guaranteed.
Why deposit before the 5th?
Interest is worked on the lowest balance between the 5th and the end of each month. ₹1.5 lakh paid by 5 April earns about ₹10,650 in the first year. ₹12,500 paid by the 5th of every month earns about ₹5,769. Paying in after the 5th loses that month's interest.
How much will I have after 15, 20 or 25 years?
At ₹1.5 lakh a year (paid at the start of each year) and 7.1%: ₹40.68 lakh after 15 years, ₹66.58 lakh after 20 and ₹103.08 lakh after 25, if the rate stays the same.
Related rates
Read our guides
See every official rate in one place
Repo, small savings, EPF, CPI and tax slabs, each with its source and date.
Change log
- 21 Oct 2026 – Page created. History from NSI (1968–Sep 2026); Oct–Dec 2026 from the DEA order of 30 Sep 2026.
How we collect this data
History comes from the National Savings Institute (Ministry of Finance). The current quarter comes from the Department of Economic Affairs order. We cross-check against the RBI Handbook. Examples are our own calculations. Read our editorial policy and how we calculate. For information only, not investment advice.