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 interest rate for PPF from April 2020 to June 2020 was 7.1%. The PPF interest rate for the quarter of 1 July, 2021 to 30 September, 2021 is 7.10% .

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.

Table 1. PPF Interest Rates from 2015 to the current quarter

Time Period Interest Rate (p.a.)
1 July 2021- 30 September 2021 7.10%
1 April, 2021 - July 2021 7.10%
1 January, 2021 - 31 March, 2021 7.10%
1 October, 2020 – 31 December, 2020 7.10%
1 July, 2020 - 30 September, 2020 7.10%
1 April, 2020 - 30 June, 2020 7.10%
1 January, 2020 - 31 March, 2020 7.90%
1 October, 2019 - 31 December, 2019 7.90%
1 July, 2019 - 30 September, 2019 7.90%
1 April, 2019 - 30 June, 2019 8.00%
1 January, 2019 - 31 March, 2019 8.00%
1 October, 2018 - 31 December, 2018 8.00%
1 July, 2018 - 30 September, 2018 7.60%
1 April, 2018 - 30 June, 2018 7.60%
1 January, 2018 - 31 March, 2018 7.60%
01 October 2017 - 26 December 2017 7.80%
01 July 2017 - 30 September 2017 7.80%
01 April 2017 - 30 June 2017 7.90%
01 January 2017 - 31 March 2017 8.00%
01 October 2016 - 31 December 2016 8.00%
01 July 2016 - 30 September 2016 8.10%
01 April 2016 - 30 June 2016 8.10%
01 April 2015 - 31 March 2016 8.70%

How is Interest on PPF Calculated?

The interest on PPF is computed on the minimum balance in your 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, you should do that on or before the 5th of the particular month. This will allow you to earn interest on the amount for the whole month.

How to Check the Current Balance of a PPF Account?

  • You contact your bank or post office branch to know the current status of your PPF account.
  • If the bank provides online banking facility, you can request the bank to link your PPF account to your respective online banking account. Once the accounts are linked, you can access your 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 Having a PPF

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

  • If you make 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 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.

FAQs on PPF Interest Rate

  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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