PPF Interest Rate

The Public Provident Fund (PPF) fetches an amount of interest on the PPF balance. The interest rates have been fluctuating for a few years and have been witnessing a downward trend since 2016. The PPF interest rate for the quarter of July 2019 to September 2019 is 7.9% (w.e.f. 1 July 2019). However, the interest rate for PPF has been decreased by 80bps in April 2020. The new interest rate for PPF will be 7.1% and effective from April 2020 to June 2020.

Earlier, the PPF interest rate is payable was decided on a yearly basis or as per requirement. However, since April 2017, the rates are changed and declared on a quarterly basis. The rate of interest applicable on the PPF has been reduced from 7.9% to 7.1% and was pinned there between April 2020 to June 2020.

Time Period Interest Rate (p.a.)
Table 1. PPF Interest Rate From 2015 to the current quarter
From 1 April 2020 to 30 June 2020 7.1%
1 October 2019 to 31 March 2020 7.9%
From 1 July 2019 to 30 September 2019 7.9%
From 1 April 2019 to 30 June 2019 8.0%
From 1 January 2019 to 31 March 2019 8.0%
From 1 October 2018 to 31 December 2018 8.0%
From 1 January 2018 to 30 September 2018 7.6%
From 1 July 2017 to 31 December 2017 7.8%
From 1 April 2017 to 30 June 2017 7.9%
From 1 October 2016 to 31 March 2017 8.0%
From 1 April 2016 to 30 September 2016 8.1%
From 1 April 2013 to 31 March 2016 8.7%
From 1 April 2013 to 31 March 2015 8.7%

How is interest on PPF calculated?

The interest on PPF is computed on the minimum balance in an individual’s account between the 5th to the final day of every month. Thus, in case the individual wishes to deposit a large amount at any time of the year, he/she should do that on or before the 5th of the particular month. This will allow the individual to earn interest on the amount for the whole month.

How to check the current balance of a PPF account?

An individual can check the status of his/her PPF account. This is what can be done to know the status of a PPF account:

  • The individual may contact their bank or post office branch to know the current status of their PPF account.
  • If the bank provides online banking facility, one can request the bank to link their PPF account to their respective online banking account. Once the accounts are linked, the individual can access his/her PPF account and perform the basic functions such as viewing or checking the PPF account status. He/she can also make online payments for PPF loans.

Advantages of PPF

Here are some of the main advantages of having a PPF Account for an Indian citizen:

  • If an individual makes a deposit of up to Rs. 1 lakh per annum in their PPF account, the sum of money is deductible under Section 80C of the Income Tax Act. The contributions made to the PPF accounts of an assessee’s spouse and/or children are also eligible for tax deduction under Section 80C.
  • The interest earned on the PPF amount is also exempted from tax. This implies that the returns earned on the investment made in PPF are completely taxfree.
  • The amount in a PPF account cannot be claimed to meet cases of debt and/or liability. The entire amount of money in a PPF account belongs to the account holder for life and is payable to the nominee(s) of the person after his/her death.


  1. What amount can be deposited under the PPF scheme?
  2. Being a subscriber, you can deposit any amount ranging from Rs.500 to Rs.1.5 lakh under the PPF scheme in a financial year.

  3. When can I withdraw money from the PPF scheme?
  4. You can withdraw money from the PPF scheme only once every year from the 7th financial year.

  5. Can I avail deductions for the amount deposited under the PPF scheme?
  6. Yes, you can avail deductions under Section 80C of the Income Tax Act for the money that you deposit under the PPF scheme.

  7. Can I avail loan facilities through the PPF scheme?
  8. Yes, you can avail loan facilities from the 3rd financial year till the 6th financial year under the PPF scheme.

  9. Do I have pay income tax on the interest that is earned on the PPF account?
  10. No, you will not be required to pay taxes on the interest earned. The interest earned is completely exempted under Section 10 (15) of the Income Tax Act.

News on PPF Interest Rate

  • Public Provident Fund Interest Rate may take a hike

    Investors have some good news in store for them as small savings schemes and interest rates of Public Provident Fund will reportedly take a major hike. There has been a significant rise in the yields provided by bonds, hence this change has come along.

    Public Provident Fund interest rate has remained unhinged for a long time now. Even small savings schemes such as National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Senior Citizens Savings Scheme, and so on are directly in link with bond yields holding same maturities by the Indian Government.

    21 June 2018

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