PPF (Public Provident Fund): Rate, Limits, Withdrawal and Loan
Independent guide. We are not part of RBI, NPCI or any bank, and we never ask for your account details, PIN or OTP.
PPF means Public Provident Fund. It is a Government of India savings scheme that you open at a post office or an authorised bank. You deposit ₹500 to ₹1.5 lakh each financial year for 15 years. The government sets the interest rate every quarter: 7.1% a year for October–December 2026. Interest is credited every 31 March.
- Run by
- Government of India, under the Public Provident Fund Scheme, 2019
- Interest, 1 Oct–31 Dec 2026
- 7.1% a year, compounded yearly (unchanged from the previous quarter)
- Deposit each year
- Minimum ₹500, maximum ₹1,50,000, in multiples of ₹50
- Term
- 15 years from the end of the financial year you open it; then extend in 5-year blocks
- Who can open
- Resident individuals, for themselves or a minor; one account each; no joint accounts
- Where
- Any post office or an authorised bank branch
- Loan
- 3rd to 6th financial year, up to 25%
- Partial withdrawal
- From the 7th financial year, once a year, up to 50%
PPF interest rate and how it is calculated
- Current rate: 7.1% a year for 1 October to 31 December 2026. The Ministry of Finance's office memorandum of 30 Sep 2026 kept all small savings rates for this quarter unchanged from July–September 2026. SBI states the PPF rate has been 7.1% since 1 Apr 2020.
- Who sets it: the central government, every quarter. Watch for the Ministry of Finance announcement near the end of each quarter, or see our interest rates page.
- Monthly calculation: interest for each month is worked out on the lowest balance between the close of the 5th day and the end of the month. Deposit on or before the 5th to earn interest for that month.
- Credit: the year's interest is added to your account on 31 March, and then itself earns interest (yearly compounding).
- Over the limit: SBI says anything deposited above ₹1,50,000 in a year earns no interest and gets no tax benefit.
A PPF account's life, step by step
Key rules by year
Year 1 is the financial year (April–March) in which you open the account. Example: opened in June 2026, year 1 is 2026-27.
| When | What you can do | Limit |
|---|---|---|
| Every year | Deposit | ₹500 to ₹1,50,000 in multiples of ₹50, lump sum or instalments. The ₹1.5 lakh cap includes what you put in your minor child's account. |
| Years 3 to 6 | Loan (Form-2) | Up to 25% of the balance at the end of the second year before the year you apply. One loan a year; a new loan only after the earlier one is fully repaid. |
| From year 7 | Partial withdrawal (Form-2) | Once a year, up to 50% of the balance at the end of the 4th year before, or at the end of the previous year, whichever is lower. Repay any loan first. |
| From year 7 | Premature closure (Form-5) | Only for life-threatening illness, higher education, or a change in residency status. Interest is cut by 1 percentage point. |
| After 15 years | Close (Form-3) or extend (Form-4) | Extend for 5-year blocks, with or without deposits. See below. |
Loan against PPF
- Repay the principal within 36 months from the first day of the month after the loan is sanctioned, in one go or in instalments.
- Then pay interest at 1% a year on the principal, in up to two monthly instalments.
- If you do not repay in full within 36 months, interest on the outstanding loan is charged at 6% a year from the start, and debited from your account each year.
- There is no fixed EMI; you choose when to repay within the 36 months.
Closing early
You can close your PPF before maturity only after five years from the end of the opening year, and only for one of these reasons, with proof:
- Treatment of a life-threatening disease of you, your spouse, dependent children or parents (medical reports).
- Higher education of you or your dependent children in India or abroad (admission documents and fee bills).
- A change in your residency status (passport and visa, or income-tax return).
Interest for the whole period is recalculated at 1 percentage point less than the rates credited. For an extended account closed mid-block, SBI says the cut applies only from the start of the current 5-year block.
Maturity and extension
- Apply in Form-4 within one year of maturity. You cannot apply before maturity.
- You keep depositing ₹500 to ₹1.5 lakh a year for another 5 years, and can repeat for any number of 5-year blocks.
- Withdrawals during each block: up to 60% of the balance at the start of the block in total, in one go or yearly.
- Once you choose to extend, you cannot cancel that choice.
- If you miss the one-year window, any new deposit is refunded without interest. The balance still earns interest.
- Only accounts that were regular at maturity (or revived before it) can be extended with deposits.
- Do nothing: the account continues without deposits for as long as you like, and keeps earning interest at the scheme rate.
- You can make one withdrawal a year, of any amount up to the balance.
- Once you have continued without deposits for more than a year, you cannot switch back to deposits.
- Apply in Form-3 any time after maturity.
- You get the whole balance with interest up to the last day of the month before the month you close.
- You can then open a new account if you wish.
Worked example (sample)
Sample only. Assumes the rate stays at 7.1% for the whole period, which is unlikely, since it is reset every quarter. The account is opened on 2 April 2026, and ₹1,50,000 is deposited by 5 April every year from 2026-27 to 2041-42 (16 deposits). Each deposit earns a full year's interest. Your actual figures will differ slightly because of rounding.
| Financial year | Deposited so far | Interest credited on 31 March | Balance on 31 March |
|---|---|---|---|
| 1 (2026-27) | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 (2027-28) | ₹3,00,000 | ₹22,056 | ₹3,32,706 |
| 5 (2030-31) | ₹7,50,000 | ₹61,368 | ₹9,25,701 |
| 10 (2035-36) | ₹15,00,000 | ₹1,47,842 | ₹22,30,124 |
| 16 (2041-42) | ₹24,00,000 | ₹2,99,493 | ₹45,17,702 |
At maturity on 1 April 2042 the sample balance is about ₹45.18 lakh: ₹24 lakh deposited and about ₹21.18 lakh interest.
Missed the ₹500 minimum? Discontinued account
- If you skip the ₹500 minimum in any year after the first, the account is treated as discontinued.
- No loans or partial withdrawals are allowed, and you cannot open another PPF account until it is finally closed.
- The balance still earns interest at the scheme rate.
- To revive it before maturity, pay a fee of ₹50 for each year missed, plus ₹500 for each year missed. Arrears count towards that year's ₹1.5 lakh limit; the fee does not.
- Not revived? SBI says the money is repaid only after maturity.
Opening and running a PPF account
- Where: any post office in India.
- How: fill Form-1 and pay at least ₹500 by cash, cheque or demand draft.
- Documents: photographs, Aadhaar, and PAN (or Form 60).
- Same rules: the rate, limits, loan, withdrawal and extension rules are identical at post offices and banks.
- Moving: you can transfer the account from a post office to a bank, or the other way.
- Where: branches of banks authorised by the government. At SBI, every branch can open one.
- How: Form-1 and a nomination form at a branch. SBI customers with a KYC-compliant account can also open, extend and add nominees online at onlinesbi.sbi (e-Services).
- Documents: photograph, Aadhaar (or enrolment number, with Aadhaar within six months), and PAN or Form 60. Without these on time, SBI says the account stops operating until you submit them.
- Moving: SBI transfers accounts to other branches, banks or post offices free of charge.
Who can and cannot have a PPF account
- Can open: any resident individual, of any age, in their own name; and a parent or guardian for a minor or a person of unsound mind. Both parents cannot open accounts for the same child.
- One account only: one PPF account per person, at a post office or a bank, apart from accounts you hold as guardian.
- Not allowed: joint accounts. The scheme is only for individuals.
- NRIs: cannot open a new account. If you become an NRI after opening, SBI says you can keep depositing until maturity on a non-repatriation basis, but cannot extend. A 2017 rule that would have closed such accounts automatically has been kept in abeyance by the Ministry of Finance since 23 Feb 2018. For accounts for money earned abroad, see NRE/NRO.
Nomination and death of the account holder
- Nominate up to four people and set their shares, in Form-10 or online at your bank. An NRI can be a nominee, paid on a non-repatriation basis.
- On the account holder's death the account is closed; the nominee cannot continue it. The balance earns interest until the month before it is paid out.
- Without a nomination, SBI may pay up to ₹5 lakh to a rightful claimant with an affidavit, disclaimer and indemnity bond; above that, it needs a succession certificate, probate or legal heir certificate.
- A court cannot attach your PPF balance for your debts.
Tax
Deposits up to ₹1.5 lakh a year qualify for a tax deduction (under the old tax regime), and the interest and maturity amount are tax-free under current law. The Income-tax Act, 2025 replaced the 1961 Act from 1 Apr 2026, so the section numbers have changed; check incometax.gov.in before you file.
Stay safe: no post office or bank will ask for your OTP, card PIN or MPIN to "update" your PPF. Report fraud on 1930 or cybercrime.gov.in. Unresolved complaints about a bank's service can go to the RBI Ombudsman after 30 days.
History
The Public Provident Fund Scheme, 1968 is notified.
The Ministry of Finance keeps in abeyance its 2017 rule that would have deemed an account closed when its holder became non-resident.
The 1968 scheme is rescinded and replaced by the Public Provident Fund Scheme, 2019.
The rate becomes 7.1% a year, where it has stayed since, according to SBI.
The Ministry of Finance keeps small savings rates unchanged for 1 Oct–31 Dec 2026.
FAQs
What is the full form of PPF?
Public Provident Fund, a Government of India savings scheme run through post offices and authorised banks.
What is the PPF interest rate now?
7.1% a year for 1 October to 31 December 2026, compounded yearly. The government reviews it every quarter.
What is the minimum and maximum PPF deposit?
₹500 minimum and ₹1,50,000 maximum per financial year, in multiples of ₹50, in any number of instalments.
When does a PPF account mature?
15 years after the end of the financial year in which you opened it. An account opened any time in 2026-27 matures on 1 April 2042.
When can I withdraw money from PPF?
From the 7th financial year, once a year, up to 50% of the lower of the balance at the end of the 4th preceding year or the previous year.
Can I take a loan against PPF?
Yes, from the 3rd to the 6th financial year, up to 25% of the balance at the end of the second preceding year. Repay within 36 months; interest is 1% a year, or 6% if you repay late.
Can I close my PPF account early?
Only after five years from the end of the opening year, and only for a life-threatening illness, higher education, or change of residency status. You get 1 percentage point less interest.
What if I forgot to deposit ₹500 in a year?
The account becomes discontinued. Revive it before maturity by paying ₹50 plus ₹500 for each missed year.
Can an NRI open a PPF account?
No. An account opened while resident can continue until maturity on a non-repatriation basis, but cannot be extended.
Can I have PPF accounts in both a post office and a bank?
No. One account per person, apart from accounts you open as guardian of a minor.
Official sources
- Ministry of Finance (DEA) – Revision of interest rates for Small Savings Schemes, Q3 2026-27 (OM dated 30 Sep 2026) (accessed 31 Oct 2026)
- Ministry of Finance (DEA) – Small Savings notifications and interest rates (accessed 31 Oct 2026)
- India Post – Public Provident Fund Scheme, 2019 (G.S.R. 915(E), 12 Dec 2019) (accessed 31 Oct 2026)
- Ministry of Finance (DEA) – PPF accounts held by non-residents (OM, 23 Feb 2018) (accessed 31 Oct 2026)
- SBI – Public Provident Fund (updated 7 Jul 2026) (accessed 31 Oct 2026)
- SBI – FAQ Public Provident Fund (updated 4 Apr 2024) (accessed 31 Oct 2026)
- India Post – Post Office savings schemes booklet (PPF section) (accessed 31 Oct 2026)
- Income Tax Department – e-filing portal (accessed 31 Oct 2026)
- Ministry of Home Affairs – National Cybercrime Reporting Portal (accessed 31 Oct 2026)
- National Savings Institute (Ministry of Finance) – Public Provident Fund Account (accessed 31 Oct 2026)
- National Savings Institute – PPF interest rates since inception (7.1% from 1 Apr 2020) (accessed 31 Oct 2026)
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