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Public Provident Fund (PPF)

Government of India — small savings scheme · Government & Post Office Schemes

A 15-year account where the government pays a notified rate, revised every quarter, and the maturity amount is tax-free.

7.10% Interest rate · Notified quarterly; current for Oct–Dec 2026

As of 1 Oct 2026. Rates change — check the source before acting.

Source: National Savings Institute · confirmed via Outlook Money, 1 October 2026

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing every post office savings scheme, with the current rates and rules.

How it works

Public Provident Fund (PPF) is a government schemes product from Government of India — small savings scheme, in the guaranteed category: fixed by contract. A 15-year account where the government pays a notified rate, revised every quarter, and the maturity amount is tax-free.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • A long-term corpus for retirement or a child's education
  • The tax-free core of a savings plan, alongside market-linked investments

Key facts

Provider
Government of India — small savings scheme
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
7.10% Interest rate, as of 1 Oct 2026
Category
Government & Post Office Schemes
Minimum investment
₹500 per financial year; maximum ₹1.5 lakh a year
Tenure
15 years
Payout
Compounded annually, paid at maturity
Eligibility
Resident individuals, one account per person. A parent or guardian can open one for a minor.
Getting your money back
One partial withdrawal a year is allowed from the seventh year. Otherwise the money stays in until maturity.
Protection
A sovereign liability of the Government of India.
Tax
Contributions qualify for a deduction under Section 80C within the overall cap. Interest and the maturity amount are exempt, provided the account is run within the scheme rules.

What can go wrong

  • The rate is reset every quarter, so contributions made later may earn less than today's rate.
  • The money is tied up for 15 years, with only a limited partial withdrawal from year seven.
  • The ₹1.5 lakh annual cap limits how much can be saved this way.

Before you decide anything

  • The rate that applies to each year's contribution, since it can change quarterly
  • What happens if you miss the ₹500 minimum deposit in a year

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.