PPF in short
- Interest: 7.1% a year for October–December 2026, set by the government every quarter. It has stayed at 7.1% since April 2020.
- Deposit: ₹500 to ₹1,50,000 a year, in one go or in parts.
- Lock-in: 15 full financial years after the year you open it. Extend in 5-year blocks, with or without new deposits.
- Tax: deposits qualify for the ₹1.5 lakh deduction (old regime), and interest and maturity are fully tax-free in both regimes.
How PPF interest works
Interest is calculated each month on the lowest balance between the 5th and the last day of the month, and added to the account once a year on 31 March. Deposit before the 5th, ideally before 5 April, to earn interest for the whole year.
Depositing ₹1,50,000 every year before 5 April for 15 years at 7.1% gives ₹40,68,209, of which ₹18,18,209 is interest, all tax-free. Extending for 10 more years with deposits takes it to ₹1.03 crore.
Withdrawals and loans
From the 7th financial year you can withdraw up to 50% of the balance at the end of the 4th year (or the previous year, if lower), once a year. A loan against PPF is possible from the 3rd to the 6th year.
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Questions people ask
What is the PPF interest rate now?
7.1% a year, compounded yearly, for the October–December 2026 quarter.
Can I deposit more than ₹1.5 lakh in PPF?
No. The ₹1.5 lakh limit covers all PPF accounts you hold, including one for a minor child. Extra deposits earn no interest and are refunded.
What happens if I miss a yearly deposit?
The account becomes inactive. You can revive it by paying ₹50 a year as penalty plus the ₹500 minimum for each missed year.