The Public Provident Fund (PPF) is the Central Government’s most trusted long-term savings scheme, offered through post offices and authorised banks. Money deposited in PPF is backed by the Government of India, and the interest it earns is fully tax-free. For the October to December 2026 quarter, PPF pays interest at 7.1% a year, compounded annually. Deposit, interest and maturity amount — all three are tax-exempt (EEE status).
Interest rate and deposit limits
In a PPF account, you can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh in a financial year. The deposit can be made in a lump sum or in several instalments through the year. The interest rate is fixed by the government every quarter — for October–December 2026 it is 7.1%, unchanged from the July–September 2026 quarter. Interest is calculated on the lowest balance between the 5th and the last day of each month.
The 15-year term and extension options
On maturity, the account holder can withdraw the entire amount or extend the account in blocks of 5 years. Without fresh deposits, the account continues on its own and the balance keeps earning interest. To extend with fresh deposits, the account holder must submit the extension form within one year of maturity.
Withdrawal and loan facilities
Partial withdrawal is allowed from the 7th financial year of the account. The account holder can withdraw once in a year, within the limits set by the scheme rules. A loan can also be taken against the PPF balance between the 3rd and 6th years of the account. After five years, the account can be closed before maturity in certain specific situations — such as serious illness or higher education.
Who can open an account and how
Any resident Indian adult can open a PPF account in their own name. Parents can also open an account in the name of a minor child, but the combined deposit in the parent’s own account and the minor’s account cannot exceed ₹1.5 lakh in a year. The account can be opened at any post office or authorised bank branch — with an Aadhaar card, PAN card and a passport-size photograph, along with the application form.
Frequently Asked Questions
Q1: What is the PPF interest rate for October–December 2026?
A: 7.1% a year, compounded annually. This rate applies from 1 October to 31 December 2026.
Q2: How much can I deposit in PPF in a year?
A: A minimum of ₹500 and a maximum of ₹1.5 lakh — the limit applies jointly to your own account and a minor child’s account.
Q3: When does a PPF account mature?
A: After 15 years, counted from the end of the financial year in which the account was opened. It can then be extended in blocks of 5 years.
Q4: Can money be withdrawn from PPF before maturity?
A: Yes, partial withdrawal is allowed from the 7th financial year, and a loan can be taken between the 3rd and 6th years.
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