PPF investors did not get a rate hike in the latest quarterly review. The Public Provident Fund interest rate remains 7.1% from October 1 to December 31, 2026, after the Ministry of Finance kept small-savings rates unchanged for Q3 FY 2026-27. The decision was notified on September 30. The latest PPF rate review confirms there is no increase this quarter.
Small-savings rates have stayed unchanged for 10 consecutive quarters, while PPF has remained at 7.1% since April 2020. The rate is not locked for the entire 15-year tenure.
Key Highlights
- PPF earns 7.1% for October–December 2026.
- The annual deposit range is ₹500 to ₹1.5 lakh.
- Interest is calculated monthly on the lowest balance between the close of the fifth day and month-end, then credited annually.
- A PPF account matures after 15 years and can be extended in five-year blocks.
- Eligible old-regime taxpayers can claim the specified-savings deduction within the overall ₹1.5 lakh limit.
PPF Interest Rate For October–December 2026 Stays At 7.1%
The Finance Ministry’s September 30 review left major small-savings rates unchanged. PPF stays at 7.1%, National Savings Certificate at 7.7%, Senior Citizens Savings Scheme and Sukanya Samriddhi Account at 8.2%, and the Post Office Monthly Income Scheme at 7.4%. The latest small-savings rate comparison provides the current rates.
| Scheme | October–December 2026 Rate |
| PPF | 7.10% |
| NSC | 7.70% |
| SCSS | 8.20% |
| Sukanya Samriddhi | 8.20% |
| Post Office MIS | 7.40% |
PPF is built for long-term accumulation rather than regular income. India Post’s PPF guidance allows ₹500 to ₹1.5 lakh to be deposited in a financial year.
One timing detail can affect interest. India Post says a calendar month earns interest on the lowest account balance between the close of the fifth day and month-end. Depositing before that cut-off can help the fresh contribution earn interest for that month.
How PPF Returns Build Up And What A 15-Year Example Shows
PPF interest compounds annually, while the government reviews the rate every quarter. Someone opening an account today should not assume that 7.1% will continue for all 15 years.
India Post gives a useful illustration. A monthly contribution of ₹1,000 for 15 years adds up to ₹1.80 lakh in deposits. Using 7.1% in its example, the interest works out to about ₹1.45 lakh and the estimated maturity amount to roughly ₹3.25 lakh. Actual maturity can differ because future rates may change.
At the maximum annual contribution, a saver can deposit ₹1.5 lakh each financial year, totalling ₹22.5 lakh over 15 years before interest.
- Contribution: ₹1.5 lakh maximum each financial year.
- Tenure: 15 years.
- Rate assumption: Never treat today’s 7.1% as guaranteed for the full term.
An online calculator holding one rate constant for 15 years gives an illustration, not a guaranteed maturity value.
PPF Maturity, Withdrawals And Tax Rules Investors Should Know
A PPF account matures after 15 years. India Post permits extension after maturity in blocks of five years. Partial withdrawals are available under the scheme after the prescribed period, while discontinued accounts face restrictions until revival or final closure.
Tax terminology changed from April 2026. Under the Income-tax Act, 2025, the specified-savings deduction is covered by Section 123 and Schedule XV. The aggregate limit remains ₹1.5 lakh for eligible savings payments, but Section 123 deductions are not available under the new concessional tax regime. The Income Tax Department’s current guidance explains the change.
- Deposit timing: Money reaching the account before the monthly interest cut-off gets more time to earn.
- Liquidity: PPF should not be treated like an emergency fund because it is a long-tenure product.
- Tax regime: The contribution deduction is relevant only when the taxpayer is eligible to claim it.
India Post states that annual PPF interest is not taxable. Government backing, compounding and tax treatment remain central to PPF even without a quarterly rate increase.
What The Latest PPF Rate Means For Savers, Plus FAQs
Existing balances continue earning the applicable 7.1% this quarter. The bigger headline is that PPF has remained at 7.1% since April 2020.
Savers should therefore look beyond the headline yield. PPF works primarily as a long-term government-backed savings option, with restricted liquidity and tax features that depend partly on the chosen tax regime.
FAQs
Is the PPF Interest Rate 7.1% for October–December 2026?
Yes. The government retained the PPF interest rate at 7.1% from October 1 through December 31, 2026, in its latest quarterly small-savings rate review.
Is the 7.1% PPF Rate Fixed For All 15 Years?
No. The government reviews small-savings rates every quarter, so a 15-year PPF account may earn different rates during different periods of its full tenure.
What Is The Maximum PPF Deposit In 2026-27?
An individual can deposit up to ₹1.5 lakh in a PPF account during one financial year, while the minimum required annual contribution remains ₹500.
When Does A PPF Account Mature?
A PPF account has a 15-year tenure. After maturity, the account holder can choose permitted continuation options, including extension for additional five-year blocks.
Does PPF Still Give A Tax Deduction In 2026?
Eligible old-regime taxpayers can claim specified-savings deductions under Section 123, subject to the ₹1.5 lakh aggregate limit and other applicable Income-tax Act conditions.
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