Understanding the PPF Interest Rate in 2026

IndiaFirst Life
• 10 Sep, 2025

Public Provident Fund (PPF) Interest Rate

The Public Provident Fund (PPF) is among the most trusted long-term savings options in India. Known for its safety, tax-free returns, and sovereign backing, it is popular with salaried individuals and self-employed alike. To make the most of what PPF has to offer, it is important to know what the PPF interest rate is in 2025.

What is the PPF Interest Rate in 2025?

For July–September 2025, the PPF account interest rate stands at 7.1% per annum. It is unchanged from the interest rate for the previous quarter. A steady interest rate ensures stability for existing investors. As a government-backed scheme, PPF can offer consistent returns to the investor, as compared to more volatile market products. Using a PPF calculator can make it easier to estimate maturity values and plan investments.

Key Points About PPF

Before you start investing, it is recommended to know all about PPF.

Here are some key things to keep in mind:

Any resident Indian can open a PPF account in a post office or bank.
Minimum annual deposit is ₹500, while the maximum is ₹1.5 lakh.
A PPF account is valid for 15 years (with an option to extend it in blocks of 5 years).
The interest is compounded annually but calculated monthly (as per the PPF interest rate).
PPF falls under the EEE category, which means that the deposits, interest, and maturity amounts, are all tax-free.**
PPF withdrawal rules differ on the basis of when you want to access the funds. Partial withdrawals are allowed from the 7th financial year onwards. The maximum permitted value is 50% of the balance from the 4th year or the previous year (whichever is lower).
Once the lock-in period of 15 years is over, you can withdraw the full amount. Investors may also extend the account in 5-year blocks, with or without new contributions, while continuing to earn interest.

These features make PPF an ideal investment plan for long-term security and tax benefits.

Making the Most of PPF Interest Rates in 2025

The Public Provident Fund interest rate is calculated on the lowest balance between the 5th and the last day of the month, though it is credited annually. To earn the best PPF interest rate, you should deposit your contribution before the 5th of each month.

If you are making a lump-sum deposit, you should ideally do so before April 5.

While PPF is an appealing product, many people compare it with other investment options, such as NPS (National Pension Scheme), ULIPs (Unit-Linked Insurance Plans), or other government-backed plans. However, when comparing NPS vs PPF or ULIP vs PPF, it is important to remember that each product will have pros and cons. While PPF may not offer the high returns that often come with market-linked products, such as NPS or PPF, it offers stability and guaranteed returns.

To conclude, the Public Provident Fund interest rate remains steady at 7.1% per annum in 2025, to ensure continued stability for investors. With benefits like tax-free returns, flexible withdrawals, and government backing, PPF continues to be an ideal investment plan for long-term savings. To make the most of PPF offerings, it is advisable to be updated with PPF interest rates and use tools like the PPF calculator.

** Tax exemptions are as per applicable tax laws from time to time.

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in India in terms of New Business IRP in Fiscal 2023. Our key differentiators are our simple, easy-to-understand products that are optimally priced. As of Sept 30, 2023, we offered 30 retail products, 13 group products along with six riders (across retail and group portfolios), along with policies under the PMJJBY scheme, catering to protection, savings, health and retirement needs of our customers, leveraging multiple distribution capabilities and augmenting various investment options. In all propositions under the categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders & PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and optimally priced with a developed comprehensive risk management framework/policy.