What is the PPF interest rate in 2026?

The PPF interest rate for Q1 FY 2026-27 (April–June 2026) is 7.1% per annum, compounded annually and credited on March 31 each year. The rate is reviewed quarterly by the government and has remained stable at 7.1% since April 2020. To earn interest for a given month, you must deposit before the 5th of that month.

Is PPF completely tax-free?

Yes. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — the highest tax benefit available in India. (1) Contributions up to ₹1.5 lakh qualify for Section 80C deduction. (2) Interest earned every year is completely tax-free. (3) The entire maturity amount (principal + interest) is tax-free. No other instrument in India offers all three exemptions simultaneously at a sovereign guarantee level.

What is the PPF withdrawal rule?

Partial withdrawals from PPF are allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th year or 50% of the balance at the end of the immediately preceding year — whichever is lower. Only one withdrawal per financial year is allowed. Full premature closure is allowed after 5 years only for specified reasons (serious illness, higher education) with a 1% interest penalty.

PPF vs ELSS — which is better for 80C in 2026?

Both serve different purposes. PPF: guaranteed 7.1% tax-free returns, zero risk, EEE status, 15-year lock-in. ELSS: historically 12–15% CAGR, 80C benefit, only 3-year lock-in, but with market risk — gains above ₹1.25L taxable at 12.5% LTCG. Smart strategy: PPF for the risk-free portion (20–30% of 80C allocation), ELSS SIP for the growth portion (70–80% of 80C). Together they give safety + superior long-term returns.

Can I open PPF account online?

Yes. PPF accounts can be opened online through the net banking portals of SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and other authorised banks, as well as through Post Office internet banking. You can also open at any post office branch or authorised bank branch with KYC documents. The account can be operated (deposits, checking balance, partial withdrawals) fully online through your bank's net banking.

What happens to PPF after 15 years?

After 15 years, you have three options: (1) Full withdrawal — close the account and take the entire tax-free maturity amount. (2) Extend with contributions — continue for 5-year blocks with fresh deposits (maintaining 80C benefit and tax-free growth). (3) Extend without contributions — the corpus continues to earn 7.1% tax-free interest without any fresh deposit requirement, making it a safe passive income instrument.

PPF Calculator 2026 — Public Provident Fund Maturity Value

Q: Can I invest more than ₹1.5 lakh in PPF per year?

No. The maximum PPF contribution is ₹1,50,000 per financial year per account. Contributions above this limit earn zero interest and are returned without any benefit. However, you can open PPF accounts for your minor children (as guardian) — each has a separate ₹1.5L annual limit. Contributions to your minor child's PPF also qualify for your Section 80C deduction.

Calculate your PPF corpus at 7.1% p.a. with annual compounding. India's safest 100% tax-free investment under EEE status — sovereign government guarantee.

📌 PPF Rate: 7.1% p.a. (Q1 FY 2026-27) ✅ 100% Tax-Free (EEE Status) 🏠 Govt. Sovereign Guarantee 📋 Section 80C up to ₹1.5L 🆕 Invest Before 5th of Month

PPF Calculator

Build a Tax-Free Corpus

PPF compounds annually at the government rate. Adjust sliders — maturity value and tax saved update live.

Yearly Investment (Max ₹1.5L)₹1.50 L

₹500₹1.5 Lakh (Max)

PPF Interest Rate (p.a.)7.1%

6.5%9.0%

Tenure (Min 15, Extendable)15 Years

15 Yrs (Min)50 Years

Your Tax Slab30%

Nil (0%)30%

🆕 EEE Status — 100% Tax-Free: Invest + Interest + Maturity

+95%tax-free gain

Invested Interest

Total Invested₹22.5 L

Interest Earned (Tax-Free)+₹18.18 L

Tax Saved (80C at slab)₹6.75 L

Effective CAGR7.10% p.a.

Maturity Value (100% Tax-Free)₹40.68 L

🚀 Open PPF + ELSS via WhatsApp

Vikash Royal ARN-356458
B.E. | MBA Finance | NISM Certified | 7+ Years in Finance

📈 PPF Maturity Table — ₹1.5 Lakh/Year at 7.1%

Maximum contribution of ₹1.5 lakh per year across different investment periods. All values are completely tax-free under EEE status.

Tenure	Total Invested	Interest Earned	Maturity Value	Tax Saved (30% slab)*
15 Years (1 term)	₹22.50 L	₹18.18 L	₹40.68 L	₹6.75 L
20 Years	₹30.00 L	₹36.59 L	₹66.59 L	₹9.00 L
25 Years	₹37.50 L	₹65.58 L	₹1.03 Cr	₹11.25 L
30 Years	₹45.00 L	₹1.11 Cr	₹1.56 Cr	₹13.50 L
35 Years	₹52.50 L	₹1.78 Cr	₹2.30 Cr	₹15.75 L
50 Years	₹75.00 L	₹8.25 Cr	₹9.00 Cr	₹22.50 L

*Tax saved at 30% slab on ₹1.5L Section 80C deduction per year. Interest rate assumed at 7.1% throughout — actual rate is reviewed quarterly. All values completely tax-free under EEE status. PPF accounts can be extended in 5-year blocks indefinitely after the initial 15-year term.

📅 Year-by-Year PPF Growth — ₹1.5L/Year at 7.1%

Compounding makes the last 5 years of a PPF account add more than the first 10 combined. See the power of patience.

Principal Interest (Tax-Free)

Each bar shows corpus at year end. Green portion = accumulated interest earned so far — all tax-free under EEE status.

⚖ PPF vs ELSS — Which 80C Investment is Better in 2026?

Both give Section 80C deduction up to ₹1.5L. The right choice depends on your risk tolerance and investment horizon.

Feature	PPF	ELSS Mutual Fund
Expected Return	7.1% (Guaranteed)	12–15% CAGR (Historical)
Lock-in Period	15 Years (Minimum)	3 Years (Shortest 80C)
Risk	Zero — Govt Guaranteed	Market Risk
Tax on Returns	100% Tax-Free (EEE)	LTCG 12.5% on gains above ₹1.25L
80C Deduction	Yes — up to ₹1.5L	Yes — up to ₹1.5L
Liquidity	Partial after 7th year	After 3-year lock-in
Max Contribution	₹1.5L per year	No limit
Best for	Risk-free debt component	Wealth creation + 80C
₹1.5L invested for 15 years	₹40.7 L (guaranteed)	~₹75 L (at 12% CAGR)
Govt Guarantee	Yes — Sovereign	No (Market-linked)
Expert Recommendation	PPF for debt safety + ELSS SIP for wealth creation — use both

Smart 80C strategy (30% slab): ₹50,000 to NPS 80CCD(1B) first (extra deduction). Remaining ₹1.5L split: PPF ₹50,000 (safety) + ELSS SIP ₹1,00,000 (growth). This combination maximises tax saving while building superior long-term wealth vs PPF alone.

📋 PPF Account Rules — All You Need to Know

Key PPF rules for FY 2026-27 — deposits, withdrawals, loans, and extension options.

Rule	Details
Interest Rate	7.1% p.a. (Q1 FY 2026-27) — Compounded annually, credited on March 31
Minimum Deposit	₹500 per financial year (account becomes inactive if not deposited)
Maximum Deposit	₹1,50,000 per financial year (across all PPF accounts held as individual)
Best Day to Deposit	Before 5th of each month — earns interest for that full month
Partial Withdrawal	From 7th FY onwards — up to 50% of balance at end of 4th year or previous year (lower of two)
Loan Against PPF	From 3rd to 6th FY — up to 25% of balance at end of 2nd preceding year. Interest: 1% above PPF rate
Premature Closure	After 5 years — only for medical emergency or higher education. Penalty: 1% interest reduction
After 15 Years	Full withdrawal, OR extend in 5-year blocks with/without fresh deposits
Minor's PPF	Parent/guardian can open PPF for minor child. Contributions count toward guardian's 80C limit
NRI PPF	NRIs cannot open new PPF. Existing accounts continue till maturity at current rate (no extension)
Nomination	Mandatory — update nominee in case of death for smooth claim settlement
Account Status	Inactive if no deposit for a year. Revival: pay ₹500/year + ₹50 penalty per inactive year

PPF accounts can be opened online via SBI, HDFC Bank, ICICI Bank, Axis Bank, or Post Office. No TDS on PPF interest — no need to submit Form 121 (earlier 15G/15H). Interest automatically credited tax-free.

💡 4 PPF Tips to Maximise Your Tax-Free Returns

Small timing and strategy decisions that add lakhs to your final PPF corpus.

📅

Always Deposit Before April 5th

PPF interest is calculated on the minimum balance between the 5th and last day of the month. Depositing ₹1.5 lakh between April 1–5 earns interest on the full amount for all 12 months — vs depositing later, which loses 1 month's interest. Over 15 years, this adds ₹1.2–1.5 lakh to your maturity value.

🔌

Extend for 5-Year Blocks

The real magic of PPF is in extension. After 15 years, extending for just one more 5-year block (₹1.5L/year at 7.1%) adds ₹11.7 lakh more interest — more than the first 5 years combined. Extending at age 45 for 20 more years (₹37.5L invested) grows to ₹2.30 crore — all tax-free.

👥

Open PPF for Your Children

Open a PPF account for each child at birth or early age. A ₹1.5L/year PPF started at birth grows to ₹66.6 lakh by age 20 (completely tax-free) — ideal for education funding. The parent claims the 80C deduction and the child gets the corpus tax-free. Works for up to 2 children as a guardian.

📈

PPF + ELSS: The Perfect 80C Combo

PPF alone at 7.1% for 15 years gives ₹40.7L on ₹22.5L invested. ELSS SIP at 12% CAGR gives ₹75L on the same ₹22.5L. Use both: PPF for the risk-free debt anchor of your portfolio, ELSS for the equity growth engine. The combination beats pure PPF by ₹30+ lakh over 15 years.

❓ PPF Calculator — Frequently Asked Questions

Most searched PPF questions in India — answered clearly for FY 2026-27.

The PPF interest rate for Q1 FY 2026-27 (April–June 2026) is 7.1% per annum, compounded annually and credited on March 31. The rate is reviewed by the government every quarter and has been stable at 7.1% since April 2020. To maximise interest, always deposit before the 5th of each month — PPF interest is calculated on the minimum balance between the 5th and the last day of the month.

Yes. PPF has EEE (Exempt-Exempt-Exempt) tax status — the highest available in India:

• Exempt 1 (80C): Contributions up to ₹1.5 lakh qualify for Section 80C deduction, saving up to ₹45,000/year in tax at 30% slab.
• Exempt 2: Interest earned each year is completely tax-free — no need to report in ITR as income.
• Exempt 3: The entire maturity amount (principal + interest) is 100% tax-free with no deduction at source.

No other instrument in India provides all three exemptions with a sovereign government guarantee.

No. The maximum PPF contribution is ₹1,50,000 per financial year per individual. Contributions above this limit earn zero interest and are returned without any benefit. However, you can open PPF accounts for minor children as guardian — each child's account has a separate ₹1.5L annual limit, and the contributions also qualify for your Section 80C deduction.

Partial Withdrawal (from 7th year): Up to 50% of balance at end of 4th year or 50% of previous year's balance, whichever is lower. One withdrawal per year.

Loan (3rd to 6th year): Up to 25% of balance at end of 2nd preceding year. Interest: 1% above PPF rate, repayable within 36 months.

Premature Closure (after 5 years): Allowed only for serious illness or higher education. Penalty: 1% reduction in interest rate for the entire period.

After 15 years: Full withdrawal, OR extension in 5-year blocks (with or without fresh contributions).

They serve different purposes and work best together:

PPF: Guaranteed 7.1% tax-free, zero risk, EEE status, 15-year lock-in. ₹1.5L/year for 15 years = ₹40.7L corpus (guaranteed).
ELSS: Historically 12–15% CAGR, 3-year lock-in (shortest 80C), gains above ₹1.25L taxed at 12.5% LTCG. ₹1.5L/year SIP for 15 years = ₹75L+ corpus.

Best strategy: Use PPF as the risk-free debt anchor (₹50–75K/year) + ELSS SIP as the growth engine (₹75K–1L/year). Complement with NPS 80CCD(1B) for an extra ₹50K deduction.

After the initial 15-year term, you have three options:

Option 1 — Full Withdrawal: Close the account and take the entire tax-free corpus. The maturity amount is completely exempt from tax.
Option 2 — Extend with Contributions: Continue for 5-year blocks with fresh deposits up to ₹1.5L/year. You retain the 80C deduction and the tax-free compounding continues.
Option 3 — Extend without Contributions: No fresh deposits needed — the corpus continues to earn 7.1% tax-free interest. Excellent passive income option for retirees who have completed 15 years and no longer need the 80C deduction (e.g., under new tax regime).

Yes. PPF accounts can be opened online through the net banking portals of SBI, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, PNB, Bank of Baroda, and all authorised banks, as well as through Post Office internet banking. You can also open at any branch with Aadhaar + PAN. Once open, deposits, balance checks, loan applications, and partial withdrawals can all be done online. The PPF account is linked to your savings account for instant transfers before the 5th of each month.

🚁 PPF Full? Add ELSS for 2× the Wealth Creation

Once your PPF contribution is maxed at ₹1.5L, the next ₹1.5L of 80C should go into ELSS mutual funds — same tax deduction, historically 12–15% CAGR vs 7.1% PPF. Vikash Royal will set up the right ELSS SIP for your risk profile and time horizon. ARN: ARN-356458

💬 Set Up PPF + ELSS on WhatsApp