PPF Interest Rate 2024

PPF stands for Public Provident Fund. It is a government-supported savings scheme introduced in 1968 by the Government of India. This scheme was introduced with the objective of providing tax-saving benefits to individuals. The PPF interest rate for the current quarter is 7.10%, compounded annually.

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What is a Public Provident Fund?

Public Provident Fund (PPF) is a popular long-term savings scheme the Government of India offers. It is designed to encourage individuals to build a retirement corpus while enjoying tax benefits. The PPF provides you with a secure and tax-efficient means of saving and wealth creation. 

The Public Provident Fund (PPF) operates under the EEE tax category, falling under Income Tax regulations. It follows an annual compounding structure, with interest calculated monthly and credited at the end of each year.

PPF Interest rates are fixed quarterly by the Ministry of Finance, Government of India. Banks offer PPF accounts at government-fixed interest rates. The interest rate, set by the Indian government, has seen a decline in recent years and that's why people consider pension plans to be a better option.

PPF Interest Rate 2023

You can find the history of PPF interest rates since 2016 in the table mentioned below:

Financial Year Interest Rate (in % p.a)
1 October 2023 – 31 December 2023 7.10%
1 July 2023 – 30 September 2023 7.10%
1 April 2023 – 30 June 2023 7.10%
1 January 2023 – 30 March 2023 7.10%
1 October 2022 – 31 December 2022 7.10%
1 July 2022 – 30 September 2022 7.10%
1 April 2022 – 30 June 2022 7.10%
1 January 2022 – 31 March 2022 7.10%
1 October 2021 – 31 December 2021 7.10%
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%
1 October 2017 - 26 December 2017 7.80%
1 July 2017 - 30 September 2017 7.80%
1 April 2017 - 30 June 2017 7.90%
1 January 2017 - 31 March 2017 8.00%
1 October 2016 - 31 December 2016 8.00%
1 July 2016 - 30 September 2016 8.10%
1 April 2016 - 30 June 2016 8.10%

How to Calculate PPF Interest Rate?

A PPF account holder can calculate the PPF interest rate on the least balance in the account between the 5th to the last day of each month using the below formula:

The PPF interest rate works on the basis of the following formula
FV = P [({(1 + i ) ^n} – 1) / i ]
Terms used in PPF Interest Rate Calculator
Future Value (The amount to be received after maturity)
Annual installments by the investor
Rate of Interest/100
Total number of years

What are the Features of a PPF Account?

The Public Provident Fund (PPF) account offers a secure and long-term savings option with the following features:

  • Government-Backed: As a government-backed scheme, PPF offers an assured and risk-free return.

  • Initial Deposit: A PPF account can be opened with a minimum deposit of Rs. 100.

  • Minimum Deposit: A minimum deposit of Rs. 500 is required to keep the PPF account active.

  • Maximum Deposit: The maximum deposit can go up to Rs. 1,50,000 in the account per year.

  • Deposit Frequency: Deposits are required at least once a year during the account's tenure.

  • Minimum Tenure: The account has a minimum tenure of 15 years, extendable in blocks of five years.

  • Nomination Facility: Account holders can designate a nominee for their account either at the time of opening or subsequently.

  • Annual Deposit Range: Depositors can contribute a minimum of Rs. 500 and a maximum of Rs. 15 Lakhs per financial year.

  • Individual Ownership: The account can be held in the name of one individual only.

  • Payment Methods: Deposits can be made through cash, cheque, Demand Draft, and Online fund transfer.

These features make PPF a reliable and flexible investment option for long-term savings.

What are the Benefits of a Public Provident Fund Account?

A Public Provident Fund account provides numerous benefits to individuals, some of them are as follows:

  • Government Guarantee: PPF investments are guaranteed and regulated by the Indian government, ensuring a higher level of safety compared to alternatives like savings accounts, FDs, and ELSS.

  • High Interest Rates: PPF offers interest rates higher than regular savings accounts and slightly surpassing fixed deposits.

  • Loan Facility: From the 3rd to the 6th year after opening the account, investors can take a loan against their PPF balance.

  • Partial Withdrawal: Starting from the 7th financial year, account holders can make partial withdrawals.

  • Guardianship Option: Parents or guardians can open PPF accounts on behalf of minors or mentally ill children, providing a secure option for their future.

  • Tax Benefits: Contributions to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act up to a specified limit. Additionally, the interest earned and maturity amount are tax-free (Exempt-Exempt-Exempt).

  • Insolvency Protection: In case of insolvency, the PPF account balance is not considered part of the investor's liabilities, making it a reliable last option for future financial stability.

Invest & Save upto ₹46,800 per annum in taxInvest & Save upto ₹46,800 per annum in tax

What is the Eligibility Criteria to Apply for PPF? 

To open a PPF account, you need to meet the following eligibility criteria:

  • Citizenship: Resident Indian Citizen

  • Age Criteria: 

    • Individuals of any age can open a PPF account

    • Parents or legal guardians can also open an account on behalf of minors

  • Number of Accounts: An individual can have Only One PPF account in their name

What are the Exclusions of PPF? 

The following investors are not eligible to contribute to Public Provident Fund (PPF):

  • HUF

  • Non-Resident Indians (NRIs)

What are the Documents Required to Apply for the Public Provident Fund (PPF)? 

  • Mandatory Documents: PAN, Application form of PPF from the bank

  • Proof of Identity: Aadhaar Card, Passport, Voter ID Card, Driving License, PAN Card

  • Proof of Address: Utility bills (electricity bill, telephone bill), Bank or post office account statement, Ration Card

  • Other Documents: Passport-size Photographs, Nomination Form

  • Proof of Age: Birth Certificate

How to Apply for a PPF Account?

You can open a Public Provident Account by following the steps mentioned below:

Step 1: Visit the chosen bank or post office branch where PPF accounts are offered

Step 2: Collect the PPF account opening application form or download it online from the official website of the bank or post office

Step 3: Carefully fill in the required details in the PPF account opening form, such as:

  • Name

  • Address

  • Contact details

  • Nomination details

Step 4: Attach the essential documents as mentioned in the section above.

Step 5: Submit the filled-in application form along with the supporting documents to the authorized personnel

Step 6: Pay the initial deposit amount required to open a PPF account

Step 7: After the application is processed, you will receive a PPF passbook that contains the following details:

  • Deposits

  • Interest earned

  • Withdrawals

Step 8: Once your PPF account is active, you can start making regular contributions to it

You can deposit funds into your PPF account through cash, check, online transfer, or other approved methods.

How to Calculate Your Returns on PPF Investments Using a PPF Calculator? 

One of the most important aspects of PPF is understanding your potential returns. While you can calculate your PPF returns manually, using a PPF calculator can make the process much simpler and more accurate.

PPF calculators are readily available online tools and can be used to estimate your PPF returns based on various factors, including your investment amount, interest rate, and investment period.

PPF vs. ULIP vs. NPS

A comparison of PPF interest rate with the best investment options in India 2024 is as follows:

Name of the Scheme Lock-in period Risk Level Interest Rate Tax Implication
Public Provident Fund (PPF) 15 years Low 7.10% p.a.
  • Tax deductions on deposits made up to Rs 1.5 lakh 
  • u/ Sec 80 C of the IT Act
National Saving Certificate(NSC) 5 years Low 7.70% p.a. Tax deductions on a deposit made up to Rs 1.5 lakh u/ IT Act
Unit Linked Insurance Plan (ULIP) 5 years High 10.00% to 15.00% p.a.
  • Tax deductions on deposits u/ Sec 80C of the IT Act, 1961
  • Interest earned is tax-free
Equity Linked Savings Scheme (ELSS) 3 years High 10.00% to 15.00% p.a.
  • Tax deductions on deposits u/ Sec 80C of the IT Act, 1961
  • TDS is levied on interest income earned at 10% p.a. 
  • LTCG tax is levied at 10% p.a.
National Pension Scheme (NPS) 3 years Low 9.00% to 15.00% p.a.
  • Tax deductions on deposits u/ Sec 80C of the IT Act, 1961
  • Interest earned is tax-free
Pradhan Mantri Vaya Vandana Yojana (PMVVY) 10 years Low 7.40% p.a.
  • Tax deductions on deposits u/ Sec 80C of the IT Act, 1961
  • Interest earned is tax-free
Senior Citizen Savings Scheme (SCSS) 5 years Low 8.20% p.a.
  • Tax deductions on deposits u/ Sec 80C of the IT Act, 1961
  • Interest earned is tax-free
Tax-Saver FDs 5 years Low 6.80% to 7.50% p.a.
  • Tax deductions on deposits u/ Sec 80C of the IT Act, 1961
  • Interest earned is tax-free


PPF interest rates play an important role in determining the returns on investments for individuals. The government determines the interest rates offered on PPF accounts, and are subject to periodic revisions. 

PPF remains an attractive investment option for individuals seeking long-term, low-risk savings with tax benefits.


  • How much will I get after 15 years in PPF?

    Assuming an investment of Rs. 1000 per month and an interest rate of 7.1% p.a., you will get approximately Rs. 520,514.95 after 15 years.
  • Is PPF better than FD?

    Yes, PPF is generally considered a better investment option than FDs for long-term savings. PPF offers higher returns and tax benefits.
  • Is PPF interest rate fixed?

    No, the PPF interest rate is not fixed. It is set by the government and is revised periodically. The current PPF interest rate is 7.1% p.a.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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