PPF Complete Guide: Rate Period, Deposits, Withdrawals, Loans, and Extensions

The Public Provident Fund is a government small-savings scheme with statutory deposit, maturity, loan and withdrawal rules. Government backing does not mean one quoted interest rate is guaranteed for the account's full life.

Current rate and period

The notified PPF rate is 7.1% per annum for Q3 FY 2026-27, effective 1 October to 31 December 2026. Small-savings rates are reviewed by the government for each quarter. Future quarterly rates may change.

NiyamFin's PPF calculator uses 7.1% as an editable current-period default and holds the entered rate constant only for illustration. A 15-year result at a constant 7.1% is not a government-guaranteed maturity amount.

Account and deposit rules

The scheme permits an eligible individual to open an account for self and, as guardian, for a minor, subject to the scheme's combined annual deposit rules. The current annual deposit range is ₹500 to ₹1.5 lakh, and the account matures after 15 years from the end of the financial year in which it was opened.

Deposits can be made in instalments or as a lump sum within the annual limit. Eligibility for opening or continuing an account can differ for resident and non-resident status, so account-specific questions should be checked with the operating bank or post office under the current scheme.

How interest is calculated

Under the PPF Scheme, interest is calculated on the lowest balance between the close of the fifth day and the end of each month and is credited at the end of the financial year. A deposit made by the fifth can therefore enter that month's interest base; this is mechanics, not a recommendation to contribute a particular amount.

Tax treatment

PPF interest and qualifying payments are exempt under current income-tax provisions. A contribution may qualify for Section 80C only when that deduction is available under the person's chosen tax regime and within the shared statutory cap. Describing PPF simply as "EEE for everyone" omits those contribution-deduction conditions.

Loans and partial withdrawals

The scheme provides a loan window and later partial-withdrawal access, each with timing and amount limits. The precise available amount depends on prior account balances and whether an earlier loan remains outstanding. These facilities do not make the full balance freely withdrawable before maturity.

Maturity and continuation

At maturity, an account holder can withdraw the balance or use continuation options provided by the scheme. Continuing with deposits requires the prescribed election and follows five-year blocks; continuation without fresh deposits has different withdrawal mechanics. Check the current form and timing with the account office before acting.

Illustrative scenario

Illustrative scenario: depositing ₹1.5 lakh at the start of each year for 15 years and holding 7.1% constant produces the calculator's ₹40,68,209 result on ₹22,50,000 of deposits. This is a current-rate illustration only. Actual PPF interest over 15 years will reflect each future notified quarterly rate and exact deposit timing.

Key points

• The 7.1% PPF rate applies to Q3 FY 2026-27, from 1 October to 31 December 2026.
• Future quarterly PPF rates may change; a constant-rate projection is not a guaranteed outcome.
• Interest uses the monthly minimum-balance rule in the official scheme.
• Contribution deductions depend on tax regime and the shared Section 80C limit.

Common mistakes

• Publishing 7.1% without its effective quarter or implying it lasts for 15 years.
• Calling a projected maturity value guaranteed.
• Treating a contribution deduction as available under every tax regime.
• Assuming loan, withdrawal and extension rules are interchangeable.

What to do next

Use the PPF calculator for several editable rate scenarios, then verify current rates and account-service rules before contributing or withdrawing.

Primary sources checked

• Department of Economic Affairs: small-savings rates for Q3 FY 2026-27
• Department of Economic Affairs: Public Provident Fund Scheme, 2019
• Income Tax Department: exempt-income provisions

Rules and rate checked on 8 October 2026.