The Public Provident Fund (PPF) interest rate will remain unchanged at 7.10% for the October-December 2026 quarter. The Central Government has decided to keep the interest rates on all small savings schemes at the same levels as the previous quarter.
The Department of Economic Affairs issued the notification on September 30, 2026, as part of its quarterly review of small savings scheme rates for the financial year 2026-27.
For PPF investors, this means there will be no change in the rate of interest during the October-December period. Those expecting an increase will continue to earn interest at the existing annual rate of 7.10%.
PPF Interest Rate Remains at 7.10%
The PPF interest rate has been maintained at 7.10% for some time, and the latest quarterly review has not resulted in any revision.
The government reviews interest rates on small savings schemes every quarter. For the October-December quarter, all rates have been retained at their previous levels.
PPF is designed as a long-term savings option with an initial maturity period of 15 years. An investor can deposit a minimum of ₹500 and up to ₹1.5 lakh in a financial year. Generally, an individual can have only one PPF account, which can be opened through a post office or a bank.
After completing the initial 15-year period, the account can be extended in blocks of five years.
PPF Tax Benefits and Annual Deposit Requirement
PPF also provides tax benefits. Under the old tax regime, contributions of up to ₹1.5 lakh can qualify for deduction under Section 80C of the Income Tax Act.
The interest earned and the maturity amount are also tax-exempt, making PPF part of the EEE (Exempt-Exempt-Exempt) category. However, the availability of tax benefits depends on the investor’s income and the tax regime selected.
To keep a PPF account active, the account holder must deposit at least ₹500 during every financial year. If the required minimum contribution is not made, the account can become inactive. Reactivation requires payment of the applicable outstanding amount and penalty as per the scheme rules.
Partial Withdrawal Facility in PPF
PPF also provides an option for partial withdrawal, subject to the conditions prescribed under the scheme.
In general, partial withdrawals can be made from the seventh financial year onwards. This feature allows investors to access a portion of their accumulated savings while continuing to use PPF as a long-term investment vehicle.
With its long tenure, annual deposit limits, tax provisions and withdrawal rules, PPF continues to be used for long-term financial planning.
Disclaimer
This article is for general informational purposes only. PPF interest rates, tax provisions, withdrawal rules and other scheme conditions are subject to government regulations and may change from time to time. Investors should verify the latest applicable rules before making financial decisions.