Has PPF interest been changed for Oct-Dec quarter?

By Sohail Khan 1 October 2026, 12:05 pm

Synopsis

The Ministry of Finance has reviewed interest rates for small savings schemes including the Public Provident. The rates will stay the same as those from the previous quarter. PPF accounts have a maturity period of 15 years and offer tax-free returns after five years.

The Ministry of Finance on Wednesday reviewed interest rates of all small savings schemes, including that of the Public Public Provident Fund (PPF), for the October-December 2026 quarter. But has it increased the PPF interest rate from 7.1% in its quarterly review.

Has the Public Provident Fund interest rate hiked for the October-December 2026 quarter?

No. The finance ministry has not changed the PPF interest rate for the October-December 2026 quarter. The PPF still offers an interest rate of 7.10% for the current quarter.

As per an office memorandum dated September 30, 2026, from the Department of Economic Affairs (Budget Division), Ministry of Finance, “The rates of interest on various small savings schemes for the third quarter of Financial Year 2026-27 starting from October 1, 2026, and ending on December 31, 2026, shall remain unchanged from those notified for the second quarter (July 1, 2026, to September 30, 2026) of FY 2026-27."

Key features of the PPF scheme

Any resident Indian can open a PPF scheme account. However, an individual can open only one PPF scheme account. The account can be opened in different banks or post offices. If multiple PPF accounts are opened, one may have to be closed or merged.

The scheme rule allows an individual to deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. Investors should make a minimum deposit every year to ensure that the PPF account remains active. A deactivated account can be reactivated by paying Rs 500 for each missed year and a penalty of Rs 50 per year.

Tax benefits of investing in PPF

Investments in a PPF account qualify for a tax deduction under Section 123 of the Income-tax Act, 2025 under the old tax regime. The interest in the PPF account is compounded annually and credited to the linked account at the end of each fiscal year. The interest earned and the maturity amount are also tax-free.

PPF falls under the EEE (Exempt-Exempt-Exempt) category, meaning:

Contributions are tax-deductible (under Section 123 of the Income-tax Act, 1925).

Interest earned is tax-free.

The maturity amount is completely tax-free.

Partial withdrawals are allowed from the 7th financial year onwards. There is no tax on partial withdrawals.

PPF maturity: Can you extend the PPF account beyond 15 years?

The PPF account matures 15 years after the end of the financial year in which it was opened. However, once a PPF account has matured, it can be extended indefinitely in 5-year blocks. After 15 years, you can decide whether or not to continue contributing. If you continue to deposit money into your PPF account, you will earn interest on both existing and new deposits.

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